global smart grid federation report
TRANSCRIPT
2 < < The Global Smart Grid Federation 2012 REPORT > > 3
TABle of contents
2 Letter from the Chair About the Global Smart Grid Federation Acknowledgements
3 Table of Contents
4 Introduction Research Methodology
5 Executive Summary
CHAPTER I: KEY THEMES 7 Smart Grid: The Opportunity
8 Challenges to Smart Grid Success
12 Role of Government
CHAPTER II: Country Reports 14 Australia
17 Canada
20 europe
24 Great Britain
27 Ireland
30 Japan
34 Korea
38 USA
42 references
Letter from the ChairDear Colleagues,
I am extremely pleased to present findings from the Global Smart Grid Federation smart grid
comparison work. In the following pages, you will find insightful analysis of the member’s
energy markets and project summaries reflecting leading edge deployments of smart grid
technology around the world. This report clearly articulates a key goal of our organization,
namely how global collaboration can help accelerate the critical transformation of our energy
infrastructure. Creating and sharing international best practices is the best way to maximize
consumer involvement, apply both proven and new technologies, and adapt policy and
regulatory structures to support this new environment. We believe you will find this analysis
highly instructive as you attempt to navigate a course toward a technology and public policy
path to advance smart grid deployment.
Sincerely,
Guido Bartels
Chair, Global Smart Grid Federation
Smart GridGB
KSGA Korea Smart Grid Association
About the Global Smart Grid FederationThe Global Smart Grid Federation is committed to creating smarter,
cleaner electricity systems around the world. By linking the major
public-private stakeholders and initiatives of participating countries,
the federation shares practices, identifies barriers and solutions,
fosters innovation, and addresses key technical and policy issues.
These and other activities help member organizations initiate
changes to their countries’ electric systems to enhance security,
increase flexibility, reduce emissions, and maintain affordable,
reliable, and accessible power.
In addition, the Global Smart Grid Federation works with the
International Smart Grid Action Network as well as with national
and international government policymakers to address the broad
challenges of deploying smarter grids. This nexus provides a forum
for communication and collaboration, which will advance smart
grids around the world and facilitate consensus-building within the
international community to address electricity system and climate
change concerns.
AcknowledgementsThis report was prepared for the Global Smart Grid Federation
(GSGF) by SmartGrid Canada. In his capacity as publisher, Alex
Bettencourt of SmartGrid Canada provided leadership, support and
input in the development of this report. Seung-Yoon Lisa Lee was
the lead author for this report, and Iuliana Calin of Elletrica acted
as editor. Isobel McIntyre of SmartGrid Canada provided research
support and, with the assistance of Lee Coogan of the GSGF,
coordinated communications with the various contributors. Soojin
Cha of Soojin Creative provided layout and graphical design support.
We want to thank the GSGF members who participated in this
study for sharing their experiences with us. We would like to extend
a special thanks to their individual representatives who provided
invaluable insight and information: Matthew Futch of Gridwise
Alliance, Paul Budde of Smart Grid Australia, Max Bryan of Alcatel-
Lucent (Australia), Susan Hwang and Jin-Kyung Im of the Korea
Smart Grid Association, various contributors from the Japan Smart
Community Alliance represented by Naoko Fujino, Liam O’Sullivan
(UK Power Networks), Toby Peters and Solmaz Moshiri (Highview
Power), Dora Guzeleva of the Low Carbon Networks Fund, and
Florian Chapalain of EDSO for Smart Grids.
For more information on this document, contact:
Alex Bettencourt, SmartGrid Canada
T +1 416 567 5052
2 < < The Global Smart Grid Federation 2012 REPORT > > 3
TABle of contents
2 Letter from the Chair About the Global Smart Grid Federation Acknowledgements
3 Table of Contents
4 Introduction Research Methodology
5 Executive Summary
CHAPTER I: KEY THEMES 7 Smart Grid: The Opportunity
8 Challenges to Smart Grid Success
12 Role of Government
CHAPTER II: Country Reports 14 Australia
17 Canada
20 europe
24 Great Britain
27 Ireland
30 Japan
34 Korea
38 USA
42 references
Letter from the ChairDear Colleagues,
I am extremely pleased to present findings from the Global Smart Grid Federation smart grid
comparison work. In the following pages, you will find insightful analysis of the member’s
energy markets and project summaries reflecting leading edge deployments of smart grid
technology around the world. This report clearly articulates a key goal of our organization,
namely how global collaboration can help accelerate the critical transformation of our energy
infrastructure. Creating and sharing international best practices is the best way to maximize
consumer involvement, apply both proven and new technologies, and adapt policy and
regulatory structures to support this new environment. We believe you will find this analysis
highly instructive as you attempt to navigate a course toward a technology and public policy
path to advance smart grid deployment.
Sincerely,
Guido Bartels
Chair, Global Smart Grid Federation
Smart GridGB
KSGA Korea Smart Grid Association
About the Global Smart Grid FederationThe Global Smart Grid Federation is committed to creating smarter,
cleaner electricity systems around the world. By linking the major
public-private stakeholders and initiatives of participating countries,
the federation shares practices, identifies barriers and solutions,
fosters innovation, and addresses key technical and policy issues.
These and other activities help member organizations initiate
changes to their countries’ electric systems to enhance security,
increase flexibility, reduce emissions, and maintain affordable,
reliable, and accessible power.
In addition, the Global Smart Grid Federation works with the
International Smart Grid Action Network as well as with national
and international government policymakers to address the broad
challenges of deploying smarter grids. This nexus provides a forum
for communication and collaboration, which will advance smart
grids around the world and facilitate consensus-building within the
international community to address electricity system and climate
change concerns.
AcknowledgementsThis report was prepared for the Global Smart Grid Federation
(GSGF) by SmartGrid Canada. In his capacity as publisher, Alex
Bettencourt of SmartGrid Canada provided leadership, support and
input in the development of this report. Seung-Yoon Lisa Lee was
the lead author for this report, and Iuliana Calin of Elletrica acted
as editor. Isobel McIntyre of SmartGrid Canada provided research
support and, with the assistance of Lee Coogan of the GSGF,
coordinated communications with the various contributors. Soojin
Cha of Soojin Creative provided layout and graphical design support.
We want to thank the GSGF members who participated in this
study for sharing their experiences with us. We would like to extend
a special thanks to their individual representatives who provided
invaluable insight and information: Matthew Futch of Gridwise
Alliance, Paul Budde of Smart Grid Australia, Max Bryan of Alcatel-
Lucent (Australia), Susan Hwang and Jin-Kyung Im of the Korea
Smart Grid Association, various contributors from the Japan Smart
Community Alliance represented by Naoko Fujino, Liam O’Sullivan
(UK Power Networks), Toby Peters and Solmaz Moshiri (Highview
Power), Dora Guzeleva of the Low Carbon Networks Fund, and
Florian Chapalain of EDSO for Smart Grids.
For more information on this document, contact:
Alex Bettencourt, SmartGrid Canada
T +1 416 567 5052
> > 54 < < The Global Smart Grid Federation 2012 REPORT
Executive Summary1. At its simplest, the “smart grid” refers to a more efficient, modernized electrical grid. It allows users to
manage their electrical demand or output in a way that is most cost-effective for them and beneficial for the power
system.
2. In each of the countries we profile, the smart grid forms a vital part of government strategy to achieve the common goals of energy security and low carbon economic growth. Only the smart grid can integrate
distributed renewable generation into the power system, which permits countries to bolster their energy
independence while reducing their carbon footprint. The smart grid fosters innovation and economic growth
fueled by skills development and higher employment levels. It presents unique economic opportunities for
industry and individuals to profit by engaging in behaviours which help achieve important societal goals like
energy security and decarbonisation.
3. The smart grid forms part of government strategy at a time when utilities need to refresh and modernize their operating infrastructure. In the developed world, most electrical grids were built in the post-World War II
period. In all the countries surveyed in this report, electricity demand is growing and load profiles are changing,
putting strains on aging infrastructure.
4. The smart grid can be built. The projects highlighted in this report evidence the fact that smart grids exist. This
report profiles the leading grid modernization projects in the world, nearly all of which are still in the development
or pilot stage.
5. Most of the profiled smart grid projects are complex. They attempt to incorporate multiple smart grid
elements. The more complex a project, the more inherent risk there is to its successful implementation. A step-by-
step approach could mitigate this risk.
6. The most difficult challenge to a successful smart grid lies in winning consumer support. Without it, the
smart grid cannot exist and it cannot deliver its promised benefits. Ultimately, the consumer is paying for the
smart grid. The smart grid does yield important benefits for consumers, but they come at a significant cost and, at
the individual level, the need for these benefits may feel less immediate.
7. Winning consumer support hinges on a radical change in thinking by utilities about their customers and by consumers about electricity. Utilities risk taking their customers for granted, being overly technocratic in
their relationship with them, and possibly alienating them. They would be well-advised to engage with consumers
on a new level, perhaps borrowing from the best practices of more competitive, consumer-centric industries.
Likewise, in many developed countries, consumers risk taking electricity for granted as a low-cost commodity,
which is always available, rather than a commodity subject to market swings in a manner similar to gasoline.
Active consumer engagement in the power system will depend on a change in this perspective.
8. The government is best positioned to educate consumers on the value of the smart grid. The smart grid is
really part of government strategy to achieve societal goals. The electricity sector is highly regulated by government.
The government has the resources and skills needed to mount large scale smart grid messaging campaigns. It is
also the best advocate for citizens on consumer-oriented issues such as affordability, privacy, cyber-security, health
and safety.
9. Government can be an effective mediator between the consumer and the power system. Governments
can (a) better persuade consumers of the benefits of smart grid, (b) better represent and protect their interests in
smart grid developments, and (c) provide an effective framework of incentives (and disincentives), which induce
the desired behaviours while still empowering consumers with choice.
IntroductionThe term “smart grid” is a flexible concept which can be very simple or very ambitious in its expression. The European
Union Commission Task Force for Smart Grids defines “smart grid” as an electricity network that can cost-efficiently
integrate the behaviour and actions of all users connected to it in a manner which ensures an economically efficient,
sustainable power system with low losses and high levels of quality and security of supply and safety. The U.S.
Department of Energy Smart Grid Task Force goes into further detail, specifying that smart grids anticipate and
respond to system disturbances in a self-healing manner, enable active consumer participation, accommodate all
generation and storage options, enable new eco opportunities, optimize asset utilization and efficient operation, and
provide the power quality needed in a digital economy. The smart grid brings together the idea of grid modernization
and the closer integration of all actors in our electricity system.
These ambitious definitions reflect a range of possibilities which have captured the imagination of policymakers, regulators,
operators and innovators around the world. Many of these characteristics are no longer mere possibilities, but have
been actualized in products and systems which are integrated into live electrical systems with positive results. In all the
countries we profile, governments have made energy security, economic growth and environmental sustainability
key national objectives. The smart grid is a key enabler for achieving these objectives. As a result, governments and
industry are collaborating on making the smart grid a reality. Most of these projects are in their early stages of planning
or implementation, but some have advanced far enough along to provide useful insight into the benefits of the smart
grid. The smart grid has not yet captured the popular imagination, but no national awareness campaigns have yet been
undertaken in the countries we profile.
In this report, we survey the smart grid activities undertaken by the Global Smart Grid Federation (GSGF) membership
and discuss some of the key opportunities and challenges faced by these projects. To provide some context for the
reader, we also describe the policy and sector backdrop against which these activities take place. This report will
illustrate that, as the global grid evolves, there are unique and important opportunities for information sharing and
collaboration, which will ensure that investments made serve the global society well into the future.
Research MethodologyFor this report, we asked participating GSGF members to submit country profile reports and project profile reports
on smart grid activities taking place in their jurisdictions. We then conducted interviews with representatives from
each participating member based on the results. Taking the results of these sessions and conducting research of
other relevant primary and secondary sources, we put our findings down on paper and distributed them to the various
participating members, asking for comments and confirmation on the portions of our work pertaining to them and
incorporating the feedback we received. The final product of our efforts is set out in these pages.
> > 54 < < The Global Smart Grid Federation 2012 REPORT
Executive Summary1. At its simplest, the “smart grid” refers to a more efficient, modernized electrical grid. It allows users to
manage their electrical demand or output in a way that is most cost-effective for them and beneficial for the power
system.
2. In each of the countries we profile, the smart grid forms a vital part of government strategy to achieve the common goals of energy security and low carbon economic growth. Only the smart grid can integrate
distributed renewable generation into the power system, which permits countries to bolster their energy
independence while reducing their carbon footprint. The smart grid fosters innovation and economic growth
fueled by skills development and higher employment levels. It presents unique economic opportunities for
industry and individuals to profit by engaging in behaviours which help achieve important societal goals like
energy security and decarbonisation.
3. The smart grid forms part of government strategy at a time when utilities need to refresh and modernize their operating infrastructure. In the developed world, most electrical grids were built in the post-World War II
period. In all the countries surveyed in this report, electricity demand is growing and load profiles are changing,
putting strains on aging infrastructure.
4. The smart grid can be built. The projects highlighted in this report evidence the fact that smart grids exist. This
report profiles the leading grid modernization projects in the world, nearly all of which are still in the development
or pilot stage.
5. Most of the profiled smart grid projects are complex. They attempt to incorporate multiple smart grid
elements. The more complex a project, the more inherent risk there is to its successful implementation. A step-by-
step approach could mitigate this risk.
6. The most difficult challenge to a successful smart grid lies in winning consumer support. Without it, the
smart grid cannot exist and it cannot deliver its promised benefits. Ultimately, the consumer is paying for the
smart grid. The smart grid does yield important benefits for consumers, but they come at a significant cost and, at
the individual level, the need for these benefits may feel less immediate.
7. Winning consumer support hinges on a radical change in thinking by utilities about their customers and by consumers about electricity. Utilities risk taking their customers for granted, being overly technocratic in
their relationship with them, and possibly alienating them. They would be well-advised to engage with consumers
on a new level, perhaps borrowing from the best practices of more competitive, consumer-centric industries.
Likewise, in many developed countries, consumers risk taking electricity for granted as a low-cost commodity,
which is always available, rather than a commodity subject to market swings in a manner similar to gasoline.
Active consumer engagement in the power system will depend on a change in this perspective.
8. The government is best positioned to educate consumers on the value of the smart grid. The smart grid is
really part of government strategy to achieve societal goals. The electricity sector is highly regulated by government.
The government has the resources and skills needed to mount large scale smart grid messaging campaigns. It is
also the best advocate for citizens on consumer-oriented issues such as affordability, privacy, cyber-security, health
and safety.
9. Government can be an effective mediator between the consumer and the power system. Governments
can (a) better persuade consumers of the benefits of smart grid, (b) better represent and protect their interests in
smart grid developments, and (c) provide an effective framework of incentives (and disincentives), which induce
the desired behaviours while still empowering consumers with choice.
IntroductionThe term “smart grid” is a flexible concept which can be very simple or very ambitious in its expression. The European
Union Commission Task Force for Smart Grids defines “smart grid” as an electricity network that can cost-efficiently
integrate the behaviour and actions of all users connected to it in a manner which ensures an economically efficient,
sustainable power system with low losses and high levels of quality and security of supply and safety. The U.S.
Department of Energy Smart Grid Task Force goes into further detail, specifying that smart grids anticipate and
respond to system disturbances in a self-healing manner, enable active consumer participation, accommodate all
generation and storage options, enable new eco opportunities, optimize asset utilization and efficient operation, and
provide the power quality needed in a digital economy. The smart grid brings together the idea of grid modernization
and the closer integration of all actors in our electricity system.
These ambitious definitions reflect a range of possibilities which have captured the imagination of policymakers, regulators,
operators and innovators around the world. Many of these characteristics are no longer mere possibilities, but have
been actualized in products and systems which are integrated into live electrical systems with positive results. In all the
countries we profile, governments have made energy security, economic growth and environmental sustainability
key national objectives. The smart grid is a key enabler for achieving these objectives. As a result, governments and
industry are collaborating on making the smart grid a reality. Most of these projects are in their early stages of planning
or implementation, but some have advanced far enough along to provide useful insight into the benefits of the smart
grid. The smart grid has not yet captured the popular imagination, but no national awareness campaigns have yet been
undertaken in the countries we profile.
In this report, we survey the smart grid activities undertaken by the Global Smart Grid Federation (GSGF) membership
and discuss some of the key opportunities and challenges faced by these projects. To provide some context for the
reader, we also describe the policy and sector backdrop against which these activities take place. This report will
illustrate that, as the global grid evolves, there are unique and important opportunities for information sharing and
collaboration, which will ensure that investments made serve the global society well into the future.
Research MethodologyFor this report, we asked participating GSGF members to submit country profile reports and project profile reports
on smart grid activities taking place in their jurisdictions. We then conducted interviews with representatives from
each participating member based on the results. Taking the results of these sessions and conducting research of
other relevant primary and secondary sources, we put our findings down on paper and distributed them to the various
participating members, asking for comments and confirmation on the portions of our work pertaining to them and
incorporating the feedback we received. The final product of our efforts is set out in these pages.
> > 7
chapter I
Key themes
Smart Grid
The OpportunityThe smart grid is an important enabler of energy security and low carbon economic growth, which are key national
policy objectives for each of the countries we profile. For these countries, “energy security” means having sufficient
energy resources to meet the present and future needs of its citizens and industry. Fossil fuels meet the majority of the
world’s energy needs, but are a limited resource. With the rising cost of fossil fuels, instability in the major exporting
countries, and concerns that “peak oil” is approaching, governments are attempting to diversify their energy sources
and bolster their energy independence by increasing renewable energy in their energy supply mix. Electricity generated
by photovoltaic and wind sources is intermittent in nature, and existing power grids are not well-equipped to handle
intermittent power the way smarter grids can. Smart grids also enable the more efficient use of electricity, shaving
losses incurred during delivery and encouraging more efficient energy behaviour by customers.
The smart grid helps foster economic growth by helping meet the electricity requirements of industry. For some
countries, it can help manage the long-term cost increases of electricity. The UK government believes that electricity
sector reform will actually reduce the price of power for the United Kingdom, that increasing domestic green energy in
the supply mix will be cheaper in the long run.
The smart grid is also an industry in itself which presents governments with an opportunity to invest and support
initiatives that foster (a) innovation (both technological and intellectual) and (b) economic development through
skills development and jobs growth, while addressing its energy security needs. Not surprisingly, some governments
like those of the U.S.A., South Korea and Japan are approaching the smart grid as the next big opportunity for their
economies to become global leaders in an industry – in this case, the new energy technology sector. Also, smart grids
can empower individuals to participate and even profit from the power system in a manner that was not possible
before. For these reasons, particularly in times of global austerity where governments may seek to sustain economic
growth levels through fiscal measures, the
smart grid appears to be a particularly sound
investment choice.
Nearly all of the countries we profile have
decarbonisation targets, either under an
international instrument or domestic
legislation. The Kyoto Protocol came into force
in February 2005 and legally binds signatories
to their stated decarbonisation targets.
Developed countries must cut GHG emissions
by at least 5% between 2008 and 2012, while
developing countries are not required to
reduce emissions at all. In 2007, the European
Union obligated its membership meet climate
and energy targets by 2020: a 20% reduction
in greenhouse gas emissions (GHG), a 20%
increase in energy efficiency, and 20% of EU’s
energy consumption from renewable energy.
Through additional directives, the EU has
imposed additional obligations relating to
renewable energy, smart meters and smart
> > 7
chapter I
Key themes
Smart Grid
The OpportunityThe smart grid is an important enabler of energy security and low carbon economic growth, which are key national
policy objectives for each of the countries we profile. For these countries, “energy security” means having sufficient
energy resources to meet the present and future needs of its citizens and industry. Fossil fuels meet the majority of the
world’s energy needs, but are a limited resource. With the rising cost of fossil fuels, instability in the major exporting
countries, and concerns that “peak oil” is approaching, governments are attempting to diversify their energy sources
and bolster their energy independence by increasing renewable energy in their energy supply mix. Electricity generated
by photovoltaic and wind sources is intermittent in nature, and existing power grids are not well-equipped to handle
intermittent power the way smarter grids can. Smart grids also enable the more efficient use of electricity, shaving
losses incurred during delivery and encouraging more efficient energy behaviour by customers.
The smart grid helps foster economic growth by helping meet the electricity requirements of industry. For some
countries, it can help manage the long-term cost increases of electricity. The UK government believes that electricity
sector reform will actually reduce the price of power for the United Kingdom, that increasing domestic green energy in
the supply mix will be cheaper in the long run.
The smart grid is also an industry in itself which presents governments with an opportunity to invest and support
initiatives that foster (a) innovation (both technological and intellectual) and (b) economic development through
skills development and jobs growth, while addressing its energy security needs. Not surprisingly, some governments
like those of the U.S.A., South Korea and Japan are approaching the smart grid as the next big opportunity for their
economies to become global leaders in an industry – in this case, the new energy technology sector. Also, smart grids
can empower individuals to participate and even profit from the power system in a manner that was not possible
before. For these reasons, particularly in times of global austerity where governments may seek to sustain economic
growth levels through fiscal measures, the
smart grid appears to be a particularly sound
investment choice.
Nearly all of the countries we profile have
decarbonisation targets, either under an
international instrument or domestic
legislation. The Kyoto Protocol came into force
in February 2005 and legally binds signatories
to their stated decarbonisation targets.
Developed countries must cut GHG emissions
by at least 5% between 2008 and 2012, while
developing countries are not required to
reduce emissions at all. In 2007, the European
Union obligated its membership meet climate
and energy targets by 2020: a 20% reduction
in greenhouse gas emissions (GHG), a 20%
increase in energy efficiency, and 20% of EU’s
energy consumption from renewable energy.
Through additional directives, the EU has
imposed additional obligations relating to
renewable energy, smart meters and smart
8 < < The Global Smart Grid Federation 2012 REPORT > > 9
grids on its membership. The smart grid furthers
these goals by integrating renewable energy
sources and electro-mobility into the existing
power system and introducing new efficiencies
through grid modernization.
The electrification of transportation (sometimes
referred to as “electro-mobility”) presents both
a challenge and an opportunity for the power
industry. Electro-mobility brings a fundamental
shift of economic opportunity away from the oil
industry to the electricity industry. Using existing
infrastructure, utilities can serve the power
needs of electric vehicles (EVs) during periods
of low demand, providing EV users with a lower
cost alternative to gasoline while increasing the
utilities’ asset productivity and revenue levels.
To capitalize on this opportunity, key smart grid
investments must be made.
It is clear that the smart grid can yield significant
benefits and address pressing needs. But there
are challenges to realizing it.
Challenges to Smart Grid Success1. Building the Smart Grid Can a smart grid be built? The various projects profiled in this report provide evidence that smart grids are possible.
In fact, they prove that smart grids in their infancy now exist. Complex smart grid projects in Miyako-Island and
Hachinohe, Japan, and Jeju Island, South Korea are operational. Similar projects are underway elsewhere. The building
blocks for smart grids are all there. There are a number of jurisdictions which have implemented smart metering and
EV infrastructure. There are both utility-level and consumer-level energy storage systems operational and integrated
into the power systems in Great Britain, Japan, and South Korea. Modular energy management systems for homes
and buildings are in development, and different utilities are implementing centralized and decentralized network
control systems.
Still, there are challenges to smart grid development. Technological developments are outpacing standards
development and regulatory frameworks, creating risk that new technologies may not meet evolving standards or
regulation. Conversely, any regulations or standards, which are developed to address issues specific to the smart
grid, risk losing relevancy if outpaced by technological development. How meaningful are these risks? Assuming
that they cannot be eliminated, what are some effective risk mitigation strategies? A stable regulatory environment
is critical to attracting investment in the smart grid space. Clear standards – for example, interoperability standards
– could encourage investment while promoting competition, which theoretically increases choice and reduces costs
for consumers. How do we balance the seemingly competitive interests of certainty and innovation? Arguably, the
risk of a disconnect forming between technological development, standards development and regulatory evolution is
low because of the high level of collaboration and consultation between relevant stakeholders in the electricity sector.
Procedural safeguards facilitating this type of collaboration and consultation seem like the most prudent approach to
balancing the interests of separate, but related processes. For these reasons, the ongoing work of groups such as the
GSGF, its constituent members, the International Energy Association, and various standards associations to promote
information-sharing and collaboration across projects and countries is critical to smart grid development and success.
Another possible challenge to innovation is a commonly cited obstacle to innovation in other industries: protectionist
attitudes towards intellectual property. The tension between intellectual property rights, innovation and standards
development is a well-canvassed topic beyond the scope of this report. It is worth noting, however, that many power
systems designed in the past have been based on proprietary standards. The exponential increase in the number of
interconnected devices on the power system underscores the importance of developing interoperability standards,
similar to those developed in the telecommunications and consumer electronic industries as the power system
becomes enriched with intelligent devices.
Interviews we conducted for this report provided important insights on other challenges to smart grid implementations.
We heard that in complex projects covering multiple aspects of the smart grid, teams should focus on one or two
functions at a time, advancing only when those functions are implemented successfully, and their value is proven.
We learned that properly defining stakeholder needs was challenging. Part of the difficulty lay in defining appropriate
categories of stakeholders (particularly, consumers) and then failing to really understand their needs. For instance, not
properly and adequately communicating the anticipated benefits of a project to stakeholders was cited as a reason for
the unpopularity of the Boulder City SmartGridCity project. We also heard that utilities risk being overly technocratic
in their approach to a project and undervaluing the consumer, even in projects which aim to modify or rely on certain
consumer behaviours. Coupled with near monopoly status, this type of technocratic attitude can alienate consumers
from utilities, with negative consequences, particularly against a backdrop of rising electricity rates. Poor consumer
responses to smart metering trials in Australia and Europe and low consumer participation in other smart grid projects
were referenced as examples. In each instance, our respondents underscored that better communications with
stakeholders and prioritizing consumer-centric benefits could have mitigated or altogether avoided these results. For
the consumer segment, one interviewee noted that real-time dialogue in community forums was far more effective in
communicating information than mailing out informational brochures.
2. A Challenging Business Case for Power System Participants: What is the value proposition?We know that smart grids provide benefits, but are they sound investments for power system participants? From the
perspective of existing utilities, if everything in the power system remained the same, there might be little reason to
undertake a smart grid project. Smart grid projects typically involve big capital investments and long implementation
cycles. The return on investment for the distribution network operators is not clear and is highly disruptive to the day-
to-day business of the utilities.
We know, however, that power systems all over the world are changing because of government initiatives and, in some
cases, consumer demand. To further their goals of greater energy independence, efficiency and decarbonisation, in all
the countries we profile, governments have enacted some type of feed-in-tariff program that establishes a premium
price for renewable energy. They have implemented or are implementing advanced metering infrastructure (AMI) in
8 < < The Global Smart Grid Federation 2012 REPORT > > 9
grids on its membership. The smart grid furthers
these goals by integrating renewable energy
sources and electro-mobility into the existing
power system and introducing new efficiencies
through grid modernization.
The electrification of transportation (sometimes
referred to as “electro-mobility”) presents both
a challenge and an opportunity for the power
industry. Electro-mobility brings a fundamental
shift of economic opportunity away from the oil
industry to the electricity industry. Using existing
infrastructure, utilities can serve the power
needs of electric vehicles (EVs) during periods
of low demand, providing EV users with a lower
cost alternative to gasoline while increasing the
utilities’ asset productivity and revenue levels.
To capitalize on this opportunity, key smart grid
investments must be made.
It is clear that the smart grid can yield significant
benefits and address pressing needs. But there
are challenges to realizing it.
Challenges to Smart Grid Success1. Building the Smart Grid Can a smart grid be built? The various projects profiled in this report provide evidence that smart grids are possible.
In fact, they prove that smart grids in their infancy now exist. Complex smart grid projects in Miyako-Island and
Hachinohe, Japan, and Jeju Island, South Korea are operational. Similar projects are underway elsewhere. The building
blocks for smart grids are all there. There are a number of jurisdictions which have implemented smart metering and
EV infrastructure. There are both utility-level and consumer-level energy storage systems operational and integrated
into the power systems in Great Britain, Japan, and South Korea. Modular energy management systems for homes
and buildings are in development, and different utilities are implementing centralized and decentralized network
control systems.
Still, there are challenges to smart grid development. Technological developments are outpacing standards
development and regulatory frameworks, creating risk that new technologies may not meet evolving standards or
regulation. Conversely, any regulations or standards, which are developed to address issues specific to the smart
grid, risk losing relevancy if outpaced by technological development. How meaningful are these risks? Assuming
that they cannot be eliminated, what are some effective risk mitigation strategies? A stable regulatory environment
is critical to attracting investment in the smart grid space. Clear standards – for example, interoperability standards
– could encourage investment while promoting competition, which theoretically increases choice and reduces costs
for consumers. How do we balance the seemingly competitive interests of certainty and innovation? Arguably, the
risk of a disconnect forming between technological development, standards development and regulatory evolution is
low because of the high level of collaboration and consultation between relevant stakeholders in the electricity sector.
Procedural safeguards facilitating this type of collaboration and consultation seem like the most prudent approach to
balancing the interests of separate, but related processes. For these reasons, the ongoing work of groups such as the
GSGF, its constituent members, the International Energy Association, and various standards associations to promote
information-sharing and collaboration across projects and countries is critical to smart grid development and success.
Another possible challenge to innovation is a commonly cited obstacle to innovation in other industries: protectionist
attitudes towards intellectual property. The tension between intellectual property rights, innovation and standards
development is a well-canvassed topic beyond the scope of this report. It is worth noting, however, that many power
systems designed in the past have been based on proprietary standards. The exponential increase in the number of
interconnected devices on the power system underscores the importance of developing interoperability standards,
similar to those developed in the telecommunications and consumer electronic industries as the power system
becomes enriched with intelligent devices.
Interviews we conducted for this report provided important insights on other challenges to smart grid implementations.
We heard that in complex projects covering multiple aspects of the smart grid, teams should focus on one or two
functions at a time, advancing only when those functions are implemented successfully, and their value is proven.
We learned that properly defining stakeholder needs was challenging. Part of the difficulty lay in defining appropriate
categories of stakeholders (particularly, consumers) and then failing to really understand their needs. For instance, not
properly and adequately communicating the anticipated benefits of a project to stakeholders was cited as a reason for
the unpopularity of the Boulder City SmartGridCity project. We also heard that utilities risk being overly technocratic
in their approach to a project and undervaluing the consumer, even in projects which aim to modify or rely on certain
consumer behaviours. Coupled with near monopoly status, this type of technocratic attitude can alienate consumers
from utilities, with negative consequences, particularly against a backdrop of rising electricity rates. Poor consumer
responses to smart metering trials in Australia and Europe and low consumer participation in other smart grid projects
were referenced as examples. In each instance, our respondents underscored that better communications with
stakeholders and prioritizing consumer-centric benefits could have mitigated or altogether avoided these results. For
the consumer segment, one interviewee noted that real-time dialogue in community forums was far more effective in
communicating information than mailing out informational brochures.
2. A Challenging Business Case for Power System Participants: What is the value proposition?We know that smart grids provide benefits, but are they sound investments for power system participants? From the
perspective of existing utilities, if everything in the power system remained the same, there might be little reason to
undertake a smart grid project. Smart grid projects typically involve big capital investments and long implementation
cycles. The return on investment for the distribution network operators is not clear and is highly disruptive to the day-
to-day business of the utilities.
We know, however, that power systems all over the world are changing because of government initiatives and, in some
cases, consumer demand. To further their goals of greater energy independence, efficiency and decarbonisation, in all
the countries we profile, governments have enacted some type of feed-in-tariff program that establishes a premium
price for renewable energy. They have implemented or are implementing advanced metering infrastructure (AMI) in
10 < < The Global Smart Grid Federation 2012 REPORT > > 11
some subset of their populations with a view to promoting changes in consumption
patterns and greater consumer participation in the power system. In Japan, the Great
East Japan Earthquake pushed power system reform to the forefront of popular
debate, making consumer empowerment and the restoration of consumer trust in
the power system high profile issues with the populace and top priorities for Japanese
policymakers. In the U.S.A., Canada and Europe, consumer interest in independent
power generation and EVs has grown. Electricity consumption is expected to increase
with the electrification of transportation, ultimately displacing at least some of the
transportation sector’s demand for oil.
These changes have altered the operating landscape of utilities. They are no longer
responsible solely for the inexpensive delivery of reliable power. They are now seen as
agents of economic growth and environmental policy. Many utilities in the developed
world are operating with aging infrastructure, and many have undertaken infrastructure
improvements to address these new mandates. Using new tools to analyze intelligence
collected real-time from smart devices, utilities can lengthen the useful life of assets.
For Manitoba Hydro in Canada, a transmission dynamic line rating project avoided the
need to increase the utility’s planned transmission capacity. For developing countries,
accommodating the load growth associated with fast growing economies is challenging
enough. Current grid modernization technology can help them attain operational
efficiencies such as improved voltage stability and reduced network losses. At this stage,
the cost of modernization can outweigh direct benefits to the utility in many projects.
However, when societal benefits are factored in, projects can have positive business
cases. Including societal benefits into the business case for these projects seems
only reasonable as these projects are really intended to further larger economic and
environmental policy objectives.
At the societal level, the smart grid can yield substantial benefits. This is evidenced by
the various reports on smart metering and smart grid in Ireland, Australia, and the UK
which document positive results or estimates. But for consumers, at the individual level,
the need for the smart grid feels less immediate. We found that, in the vast majority of
the projects surveyed for this report, costs flowed through to the consumer either as a
taxpayer or as a ratepayer through higher electricity prices. For many consumers, who
have probably taken electricity for granted as a low cost, abundant commodity, the smart
grid imposes this financial burden and added inconveniences, which aim to modify
existing behavioural patterns. This presents the most difficult and important challenge
we see to realizing the smart grid vision: How do you convince electricity consumers to
change their behaviour and pay more for it?
3. Winning Popular Support with the Ratepayer – Consumer EngagementConsumer engagement is critical to the smart grid’s success. Consumer support is also
critical to smart grid’s survival because, without the support of the ultimate payor, smart
grid initiatives would not exist. To illustrate, in a 2011 Canadian provincial election, the
citizens of the Province of Ontario were presented with an opportunity to abandon the
incumbent government’s ambitious green energy strategy of which smart meters and
the smart grid formed a part. The electorate gave the Ontario Premier another term in office to pursue this ambitious
strategy, under a minority win.
For these reasons, consumer engagement should be a critical part of any smart grid strategy. For consumers to be
engaged, they must be (a) motivated and (b) enabled. Voluntary engagement is ideal and preferable, particularly given
that smart grids can only exist with government support and governments depend on popular support. Consumer par-
ticipation in the power system is relatively new as a popular concept. There are consumer movements towards energy
autonomy – “living off the grid”, so to speak – but they are limited in number, and early adapters alone cannot form
the consumer base needed to effect change.
Because motivation is not always organic, external stimulus is sometimes necessary. Of the countries we profile in this
report, most have already introduced or intend to introduce some form of time-of-use (TOU) pricing which is meant to
induce the desired behavioural changes. Project teams have seen reductions in energy usage ranging anywhere from
2.5% to 15% by introducing smart meters, in-home-display units (IHDs), and, in some cases, TOU billing. As one proj-
ect manager we interviewed for this report noted, “green” does not matter as much as money when it comes to con-
sumer choices. Relying on this type of observation, projects such as “ADDRESS” and “EcoGrid EU” in the European
Union are experimenting with additional financial incentives by making consumers vendors in the electricity market,
giving consumers the opportunity to sell power back into the grid or sell additional balancing and ancillary services to
network operators.
To enable consumer participation in the power system, consumers must have the information they need to make deci-
sions. AMI is the basic infrastructure needed to enable effective consumer participation in the power system because
AMI gives data on electricity price and consumption to customers and utilities. Together with IHDs and customer web
portals, AMI communicates information about customer energy consumption, price signals (including TOU pricing
information), and improved energy diagnostics from more detailed load profiles. These solutions act as an intermedi-
ary between the power system and the consumer, and they are being implemented in nearly all of the projects profiled
in this report. Outfitting consumers with energy management systems (including energy storage solutions) and
distributed generation resources further empowers them to become more independent and even active as vendors in
the electricity market.
By using (a) financial incentives or disincentives to motivate consumers and (b) new technology to enable consum-
ers, can you achieve the consumer engagement needed to make the smart grid a reality? Not really. There have been
very negative consumer reactions and even resistance to projects incorporating versions of TOU pricing and demand
response technologies. In the Netherlands, a smart metering implementation was halted in response to consumer
protests based on privacy concerns. It eventually resumed, albeit in a modified form which allowed customers to refuse
smart meter installations. In the Australian State of Victoria, consumer resistance to mandatory smart meters and
the planned TOU scheme became well-publicized. Class action suits in the U.S. States of California and Texas alleged
overbilling and raised health and privacy concerns. Poor communications with stakeholders contributed to the negative
response to the SmartGridCity project in Boulder, Colorado, U.S.A. Consumer-centric concerns have fueled the debate
in Great Britain as to whether smart meters should be mandatory.
From these examples, we see that (a) the failure to be sensitive to consumer-centric issues like privacy and security
can jeopardize a project and (b) concerns about whether consumers can bear the cost of renewable energy and the
grid updates required to deliver renewable energy may be well-founded. How then is it best to bolster consumer sup-
port and therefore engagement in the smart grid? In our interviews, we heard a common message regarding the need
for a national consumer engagement strategy. In some smart grid projects, the utilities involved are attempting to
mount consumer awareness campaigns for what are essentially societal or national policy goals. Utilities are typically
monopoly providers which lack experience in winning over consumers. While many have government relations depart-
ments, few utilities have consumer-oriented marketing departments. Notably, for its planned smart meter deployment,
the UK government just recently released a draft consumer engagement strategy for comment. Generally, we did not
find this in other countries.
10 < < The Global Smart Grid Federation 2012 REPORT > > 11
some subset of their populations with a view to promoting changes in consumption
patterns and greater consumer participation in the power system. In Japan, the Great
East Japan Earthquake pushed power system reform to the forefront of popular
debate, making consumer empowerment and the restoration of consumer trust in
the power system high profile issues with the populace and top priorities for Japanese
policymakers. In the U.S.A., Canada and Europe, consumer interest in independent
power generation and EVs has grown. Electricity consumption is expected to increase
with the electrification of transportation, ultimately displacing at least some of the
transportation sector’s demand for oil.
These changes have altered the operating landscape of utilities. They are no longer
responsible solely for the inexpensive delivery of reliable power. They are now seen as
agents of economic growth and environmental policy. Many utilities in the developed
world are operating with aging infrastructure, and many have undertaken infrastructure
improvements to address these new mandates. Using new tools to analyze intelligence
collected real-time from smart devices, utilities can lengthen the useful life of assets.
For Manitoba Hydro in Canada, a transmission dynamic line rating project avoided the
need to increase the utility’s planned transmission capacity. For developing countries,
accommodating the load growth associated with fast growing economies is challenging
enough. Current grid modernization technology can help them attain operational
efficiencies such as improved voltage stability and reduced network losses. At this stage,
the cost of modernization can outweigh direct benefits to the utility in many projects.
However, when societal benefits are factored in, projects can have positive business
cases. Including societal benefits into the business case for these projects seems
only reasonable as these projects are really intended to further larger economic and
environmental policy objectives.
At the societal level, the smart grid can yield substantial benefits. This is evidenced by
the various reports on smart metering and smart grid in Ireland, Australia, and the UK
which document positive results or estimates. But for consumers, at the individual level,
the need for the smart grid feels less immediate. We found that, in the vast majority of
the projects surveyed for this report, costs flowed through to the consumer either as a
taxpayer or as a ratepayer through higher electricity prices. For many consumers, who
have probably taken electricity for granted as a low cost, abundant commodity, the smart
grid imposes this financial burden and added inconveniences, which aim to modify
existing behavioural patterns. This presents the most difficult and important challenge
we see to realizing the smart grid vision: How do you convince electricity consumers to
change their behaviour and pay more for it?
3. Winning Popular Support with the Ratepayer – Consumer EngagementConsumer engagement is critical to the smart grid’s success. Consumer support is also
critical to smart grid’s survival because, without the support of the ultimate payor, smart
grid initiatives would not exist. To illustrate, in a 2011 Canadian provincial election, the
citizens of the Province of Ontario were presented with an opportunity to abandon the
incumbent government’s ambitious green energy strategy of which smart meters and
the smart grid formed a part. The electorate gave the Ontario Premier another term in office to pursue this ambitious
strategy, under a minority win.
For these reasons, consumer engagement should be a critical part of any smart grid strategy. For consumers to be
engaged, they must be (a) motivated and (b) enabled. Voluntary engagement is ideal and preferable, particularly given
that smart grids can only exist with government support and governments depend on popular support. Consumer par-
ticipation in the power system is relatively new as a popular concept. There are consumer movements towards energy
autonomy – “living off the grid”, so to speak – but they are limited in number, and early adapters alone cannot form
the consumer base needed to effect change.
Because motivation is not always organic, external stimulus is sometimes necessary. Of the countries we profile in this
report, most have already introduced or intend to introduce some form of time-of-use (TOU) pricing which is meant to
induce the desired behavioural changes. Project teams have seen reductions in energy usage ranging anywhere from
2.5% to 15% by introducing smart meters, in-home-display units (IHDs), and, in some cases, TOU billing. As one proj-
ect manager we interviewed for this report noted, “green” does not matter as much as money when it comes to con-
sumer choices. Relying on this type of observation, projects such as “ADDRESS” and “EcoGrid EU” in the European
Union are experimenting with additional financial incentives by making consumers vendors in the electricity market,
giving consumers the opportunity to sell power back into the grid or sell additional balancing and ancillary services to
network operators.
To enable consumer participation in the power system, consumers must have the information they need to make deci-
sions. AMI is the basic infrastructure needed to enable effective consumer participation in the power system because
AMI gives data on electricity price and consumption to customers and utilities. Together with IHDs and customer web
portals, AMI communicates information about customer energy consumption, price signals (including TOU pricing
information), and improved energy diagnostics from more detailed load profiles. These solutions act as an intermedi-
ary between the power system and the consumer, and they are being implemented in nearly all of the projects profiled
in this report. Outfitting consumers with energy management systems (including energy storage solutions) and
distributed generation resources further empowers them to become more independent and even active as vendors in
the electricity market.
By using (a) financial incentives or disincentives to motivate consumers and (b) new technology to enable consum-
ers, can you achieve the consumer engagement needed to make the smart grid a reality? Not really. There have been
very negative consumer reactions and even resistance to projects incorporating versions of TOU pricing and demand
response technologies. In the Netherlands, a smart metering implementation was halted in response to consumer
protests based on privacy concerns. It eventually resumed, albeit in a modified form which allowed customers to refuse
smart meter installations. In the Australian State of Victoria, consumer resistance to mandatory smart meters and
the planned TOU scheme became well-publicized. Class action suits in the U.S. States of California and Texas alleged
overbilling and raised health and privacy concerns. Poor communications with stakeholders contributed to the negative
response to the SmartGridCity project in Boulder, Colorado, U.S.A. Consumer-centric concerns have fueled the debate
in Great Britain as to whether smart meters should be mandatory.
From these examples, we see that (a) the failure to be sensitive to consumer-centric issues like privacy and security
can jeopardize a project and (b) concerns about whether consumers can bear the cost of renewable energy and the
grid updates required to deliver renewable energy may be well-founded. How then is it best to bolster consumer sup-
port and therefore engagement in the smart grid? In our interviews, we heard a common message regarding the need
for a national consumer engagement strategy. In some smart grid projects, the utilities involved are attempting to
mount consumer awareness campaigns for what are essentially societal or national policy goals. Utilities are typically
monopoly providers which lack experience in winning over consumers. While many have government relations depart-
ments, few utilities have consumer-oriented marketing departments. Notably, for its planned smart meter deployment,
the UK government just recently released a draft consumer engagement strategy for comment. Generally, we did not
find this in other countries.
12 < < The Global Smart Grid Federation 2012 REPORT
Role of GovernmentSignificant government investment enabled nearly all of the AMI and smart grid initiatives we surveyed for this
report, taking the form of cash expenditures, regulatory reforms and/or rate recovery intended to enable smart grid
investments. In all of the countries we profile, the electricity industry is typically dominated by monopoly providers and
is highly regulated. Government determines who the industry participants are and exercises significant price controls
through regulating bodies. In short, governments have set the smart grid agenda for their respective electricity sectors
and are financing its development. Because governments control so many of the factors the smart grid depends on,
they bear significant responsibility for the smart grid’s success or failure. Because they control prices and the regulatory
framework, it is incumbent on governments to provide a stable and transparent environment to encourage investment
and facilitate cooperation between regulatory authorities and industry.
For these reasons, the government, in collaboration with the industry, is arguably in the best position to tackle what
may be the most difficult yet critical factor for success: consumer support. Governments have adopted AMI and the
smart grid as key tools to further policy objectives which are ultimately important to the individual, but the pressing
need for which is not necessarily felt at the individual level. Smart grid project teams are trying to convince consumers
of the importance of these objectives and the benefits of the smart grid with mixed results. In some cases, consumers
appear to have pitted themselves against utilities in response to rising prices and pressures that they attribute to
utilities. For the smart grid to succeed, governments need to play a leading role in mediating this relationship, better
communicating with consumers and protecting and advocating consumer interests in smart grid development.
chapter iI Country reports
In this chapter, we profile leading smart grid projects nominated by participating GSGF members. To provide
context for the reader, we also describe the policy and industry background for these projects. By doing so, we
hope to encourage continued information-sharing and dialogue between project teams, industry and consumer
associations, and policy makers, as they tackle common challenges to further common interests in the smart grid.
12 < < The Global Smart Grid Federation 2012 REPORT
Role of GovernmentSignificant government investment enabled nearly all of the AMI and smart grid initiatives we surveyed for this
report, taking the form of cash expenditures, regulatory reforms and/or rate recovery intended to enable smart grid
investments. In all of the countries we profile, the electricity industry is typically dominated by monopoly providers and
is highly regulated. Government determines who the industry participants are and exercises significant price controls
through regulating bodies. In short, governments have set the smart grid agenda for their respective electricity sectors
and are financing its development. Because governments control so many of the factors the smart grid depends on,
they bear significant responsibility for the smart grid’s success or failure. Because they control prices and the regulatory
framework, it is incumbent on governments to provide a stable and transparent environment to encourage investment
and facilitate cooperation between regulatory authorities and industry.
For these reasons, the government, in collaboration with the industry, is arguably in the best position to tackle what
may be the most difficult yet critical factor for success: consumer support. Governments have adopted AMI and the
smart grid as key tools to further policy objectives which are ultimately important to the individual, but the pressing
need for which is not necessarily felt at the individual level. Smart grid project teams are trying to convince consumers
of the importance of these objectives and the benefits of the smart grid with mixed results. In some cases, consumers
appear to have pitted themselves against utilities in response to rising prices and pressures that they attribute to
utilities. For the smart grid to succeed, governments need to play a leading role in mediating this relationship, better
communicating with consumers and protecting and advocating consumer interests in smart grid development.
chapter iI Country reports
In this chapter, we profile leading smart grid projects nominated by participating GSGF members. To provide
context for the reader, we also describe the policy and industry background for these projects. By doing so, we
hope to encourage continued information-sharing and dialogue between project teams, industry and consumer
associations, and policy makers, as they tackle common challenges to further common interests in the smart grid.
14 < < The Global Smart Grid Federation 2012 REPORT AUSTRALIA >> 15
a. Energy Policy
Focusing on demand management, energy security, and energy
efficiency, Australia has set an ambitious national target to
integrate 20% renewable energy by 2020. Australia is a federal
parliamentary democracy comprised of states and territories.
Generally, energy policy falls within state jurisdiction but is
coordinated nationally through a framework established by the
Council of Australian Governments (COAG). The COAG has
agreed upon guiding principles such as energy security and
reliability, appropriate investment in generation and networks,
commercial adoption of demand side response solutions, and
consistent approaches to electricity market reforms and clean
energy. The Ministerial Council on Energy (established by the
COAG in 2001), provides national oversight and coordination
of policy development and leadership on broader convergence
issues, such as the environmental impact of energy policy.
Australia is a net exporter of energy, coal being its primary export
in this area and domestic energy consumption representing a third of total energy production.
In 2006 and 2007, Australia suffered severe energy problems caused by energy shortages. An invigorated focus on
demand management and energy security followed. Electricity tariffs increased as long-delayed network investments
were finally made. Objectives for reducing dependency on oil in the energy supply were set. Australia also set national
decarbonisation, energy efficiency, and renewable targets. Under the Kyoto Protocol, Australia committed to slow
CO2 emissions between the years 2008 to 2012 so that they are no greater than 8% higher than 1990 levels. In 2009,
the Australian government implemented the Renewable Energy Target scheme to meet Parliament’s “Expanded
Renewable Energy Target” of 20% renewable energy sources by 2020.
b. Electricity Sector
The Australian electrical grid is comprised of many different grids, some of which are not interconnected. There is
the grid referred to as the National Electricity Market (NEM) in Eastern and Southern Australia. It is comprised of
five state-based fully interconnected transmission networks covering Queensland, New South Wales, the Australian
Capital Territory, Victoria, South Australia, and Tasmania. The NEM has 13 major electricity distribution networks
and also functions as the wholesale electricity market. There are transmission and distribution networks in Western
Australia and the Northern Territory that are not interconnected to each other or to the NEM network; they are
regulated separately.
01 Australia
The electricity sector is governed by energy policies established by
the Ministerial Council on Energy and the relevant state government.
The Australian Energy Market Commission (AEMC) sets policy and
governance structure for the energy markets, which set the operating
requirements and obligations of market participants. The AEMC is
accountable to the COAG. The Australian Energy Regulator (AER)
oversees economic regulation of the NEM, which also serves as the
wholesale market and compliance with the National Electricity Law
and Rules. The Australian Energy Market Operator (AEMO) manages
the NEM. AEMO also oversees the security of the NEM electricity grid
and is also responsible for national transmission planning. AEMO
was established by the COAG and developed under the Ministerial
Council on Energy. Together, AEMC, AER and AEMO are the entities
responsible for regulating and operating the electricity market for
the NEM. Western Australia and the Northern Territory have their
own independent regulators for the electricity sector: the Economic
Regulation Authority and the Utilities Commission respectively.
With the exception of the State of Victoria, the electricity sector in
Australia is largely dominated by state-owned vertically integrated
monopolies, which policymakers hope to deregulate in the future.
As a result of market reforms initiated in 2003, the NEM territories
have free market competition in generation and the electricity retail
market. There has been difficulty attracting investment in new
power plants due to Australia’s low electricity prices and debates on
introducing additional supply costs such as carbon taxes.
Transmission and distribution services are mostly provided
by government or government-owned entities. The networks
comprising the NEM are mostly state-owned and operated.
The distribution networks are owned and operated by either
the government (e.g. Queensland, Western Australia, Northern
Territory), the private sector (Victoria), or both the government
and private sector together (e.g. New South Wales and the ACT).
They are monopoly providers in their designated areas. It is not
uncommon to see distribution and retailing vertically integrated in
these territories. AER exercises retail price controls. There are plans
to proceed with further market reforms to open up the electricity
supply industry to more competition.
In Western Australia and Northern Territory, the governments have
retained ownership over the electricity distribution sector, and the
transmission, distribution, and retail businesses are vertically integrated.
c. Smart Meter / Smart Grid Infrastructure
In Australia, smart meters have become a controversial political
issue. In response to the 2006-2007 energy shortages, the COAG
committed to a national smart meter roll-out where “benefits
outweighed the costs.” A series of cost-benefit analyses were
subsequently performed. Consultants determined that benefits
could range anywhere from ~$299M up to $3.3B in net present
value over a 20 year period, based on a variety of defined scenarios.
The State of Victoria commenced a mandatory roll-out of smart
metering infrastructure and, with it, new time-of-use pricing. All costs
associated with this deployment were passed along to consumers,
including the cost of the smart meter itself. Against the backdrop of
already increasing electricity prices, consumer reaction to the project
was extremely negative. There was a temporary moratorium put on the
rollout. It has since resumed in the face of consumer opposition. New
South Wales has also proceeded with a smart meter trial deployment.
In Australia, the various governments have also demonstrated a keen
interest in the smart grid. Smart Grid Australia is a non-profit, non-
partisan organization dedicated to modernizing Australia’s electrical
system. It has played a key role in providing critical information and
assistance to the government for smart grid initiatives.
Following the global economic crisis which began in 2008, with
the assistance of Smart Grid Australia, the Australian government,
initiated the Smart Grid Smart City program as part of its National
Energy Efficiency Initiative. Through this program, the Australian
government is funding the Smart Grid Smart City demonstration
project profiled below. The government is also developing a
regulatory reform strategy to remove barriers and improve incentives
to smart grid investments, including measures that address demand-
side regulation and time-of-use tariffs. It is also engaged in a review
process to determine what public initiatives are needed to prepare
electricity networks for a higher number of electric vehicles. State
governments have also become involved in smart grid activities. The
government of New South Wales is examining whether restructuring
distribution networks can yield efficiencies, which would relieve
price pressures. The Queensland government has also expressed an
interest in smart grid, and is seeking advice from industry on smart
grid initiatives.
Smart grids are on the agenda of every Australian distribution
business, and most are engaged in projects of varying scope
and scale. In this report, we profile two illustrative smart grid
projects. The Smart Grid Smart City project reflects the high level
of coordination and support between government and industry,
which appears to be a key characteristic of the Australian smart grid
movement. The other reflects the type of network modernization that
interests utilities and is critical to smart grid development.
14 < < The Global Smart Grid Federation 2012 REPORT AUSTRALIA >> 15
a. Energy Policy
Focusing on demand management, energy security, and energy
efficiency, Australia has set an ambitious national target to
integrate 20% renewable energy by 2020. Australia is a federal
parliamentary democracy comprised of states and territories.
Generally, energy policy falls within state jurisdiction but is
coordinated nationally through a framework established by the
Council of Australian Governments (COAG). The COAG has
agreed upon guiding principles such as energy security and
reliability, appropriate investment in generation and networks,
commercial adoption of demand side response solutions, and
consistent approaches to electricity market reforms and clean
energy. The Ministerial Council on Energy (established by the
COAG in 2001), provides national oversight and coordination
of policy development and leadership on broader convergence
issues, such as the environmental impact of energy policy.
Australia is a net exporter of energy, coal being its primary export
in this area and domestic energy consumption representing a third of total energy production.
In 2006 and 2007, Australia suffered severe energy problems caused by energy shortages. An invigorated focus on
demand management and energy security followed. Electricity tariffs increased as long-delayed network investments
were finally made. Objectives for reducing dependency on oil in the energy supply were set. Australia also set national
decarbonisation, energy efficiency, and renewable targets. Under the Kyoto Protocol, Australia committed to slow
CO2 emissions between the years 2008 to 2012 so that they are no greater than 8% higher than 1990 levels. In 2009,
the Australian government implemented the Renewable Energy Target scheme to meet Parliament’s “Expanded
Renewable Energy Target” of 20% renewable energy sources by 2020.
b. Electricity Sector
The Australian electrical grid is comprised of many different grids, some of which are not interconnected. There is
the grid referred to as the National Electricity Market (NEM) in Eastern and Southern Australia. It is comprised of
five state-based fully interconnected transmission networks covering Queensland, New South Wales, the Australian
Capital Territory, Victoria, South Australia, and Tasmania. The NEM has 13 major electricity distribution networks
and also functions as the wholesale electricity market. There are transmission and distribution networks in Western
Australia and the Northern Territory that are not interconnected to each other or to the NEM network; they are
regulated separately.
01 Australia
The electricity sector is governed by energy policies established by
the Ministerial Council on Energy and the relevant state government.
The Australian Energy Market Commission (AEMC) sets policy and
governance structure for the energy markets, which set the operating
requirements and obligations of market participants. The AEMC is
accountable to the COAG. The Australian Energy Regulator (AER)
oversees economic regulation of the NEM, which also serves as the
wholesale market and compliance with the National Electricity Law
and Rules. The Australian Energy Market Operator (AEMO) manages
the NEM. AEMO also oversees the security of the NEM electricity grid
and is also responsible for national transmission planning. AEMO
was established by the COAG and developed under the Ministerial
Council on Energy. Together, AEMC, AER and AEMO are the entities
responsible for regulating and operating the electricity market for
the NEM. Western Australia and the Northern Territory have their
own independent regulators for the electricity sector: the Economic
Regulation Authority and the Utilities Commission respectively.
With the exception of the State of Victoria, the electricity sector in
Australia is largely dominated by state-owned vertically integrated
monopolies, which policymakers hope to deregulate in the future.
As a result of market reforms initiated in 2003, the NEM territories
have free market competition in generation and the electricity retail
market. There has been difficulty attracting investment in new
power plants due to Australia’s low electricity prices and debates on
introducing additional supply costs such as carbon taxes.
Transmission and distribution services are mostly provided
by government or government-owned entities. The networks
comprising the NEM are mostly state-owned and operated.
The distribution networks are owned and operated by either
the government (e.g. Queensland, Western Australia, Northern
Territory), the private sector (Victoria), or both the government
and private sector together (e.g. New South Wales and the ACT).
They are monopoly providers in their designated areas. It is not
uncommon to see distribution and retailing vertically integrated in
these territories. AER exercises retail price controls. There are plans
to proceed with further market reforms to open up the electricity
supply industry to more competition.
In Western Australia and Northern Territory, the governments have
retained ownership over the electricity distribution sector, and the
transmission, distribution, and retail businesses are vertically integrated.
c. Smart Meter / Smart Grid Infrastructure
In Australia, smart meters have become a controversial political
issue. In response to the 2006-2007 energy shortages, the COAG
committed to a national smart meter roll-out where “benefits
outweighed the costs.” A series of cost-benefit analyses were
subsequently performed. Consultants determined that benefits
could range anywhere from ~$299M up to $3.3B in net present
value over a 20 year period, based on a variety of defined scenarios.
The State of Victoria commenced a mandatory roll-out of smart
metering infrastructure and, with it, new time-of-use pricing. All costs
associated with this deployment were passed along to consumers,
including the cost of the smart meter itself. Against the backdrop of
already increasing electricity prices, consumer reaction to the project
was extremely negative. There was a temporary moratorium put on the
rollout. It has since resumed in the face of consumer opposition. New
South Wales has also proceeded with a smart meter trial deployment.
In Australia, the various governments have also demonstrated a keen
interest in the smart grid. Smart Grid Australia is a non-profit, non-
partisan organization dedicated to modernizing Australia’s electrical
system. It has played a key role in providing critical information and
assistance to the government for smart grid initiatives.
Following the global economic crisis which began in 2008, with
the assistance of Smart Grid Australia, the Australian government,
initiated the Smart Grid Smart City program as part of its National
Energy Efficiency Initiative. Through this program, the Australian
government is funding the Smart Grid Smart City demonstration
project profiled below. The government is also developing a
regulatory reform strategy to remove barriers and improve incentives
to smart grid investments, including measures that address demand-
side regulation and time-of-use tariffs. It is also engaged in a review
process to determine what public initiatives are needed to prepare
electricity networks for a higher number of electric vehicles. State
governments have also become involved in smart grid activities. The
government of New South Wales is examining whether restructuring
distribution networks can yield efficiencies, which would relieve
price pressures. The Queensland government has also expressed an
interest in smart grid, and is seeking advice from industry on smart
grid initiatives.
Smart grids are on the agenda of every Australian distribution
business, and most are engaged in projects of varying scope
and scale. In this report, we profile two illustrative smart grid
projects. The Smart Grid Smart City project reflects the high level
of coordination and support between government and industry,
which appears to be a key characteristic of the Australian smart grid
movement. The other reflects the type of network modernization that
interests utilities and is critical to smart grid development.
> > 1716 < < The Global Smart Grid Federation 2012 REPORT
Intelligent Network Communities
Three 11kV feeders & 4000 consumers • $15M
Smart Grid Smart City Thousands of households • $243M
a. Canadian Energy Policy
Canada has the third largest proven crude oil reserves in the
world, and the federal government views them as key engines
of the Canadian economy. The current federal government has
avoided and even eliminated binding environmental or energy-
related commitments which would require it to embrace green
energy or implement any GHG emission controls. In December
2011, the Canadian government announced Canada’s withdrawal
from the Kyoto Protocol. (Previously, under the Kyoto Protocol,
Canada committed to reduce its green house gas emissions
to 6% below 1990 levels, but was not on track to meet this
obligation. ) Canada is a party to the Copenhagen Accord under
which it targets a GHG reduction of 17% below 2005 levels by
2020. This target under the Copenhagen Accord is a target only,
not a legal obligation. While it has refrained from making any
commitments which could constrain its economic development
plans, the federal government has made stimulus funds available for green initiatives, such as the Clean Energy Fund
and the ecoEnergy Innovation Initiative.
In contrast, the majority of the country’s provincial governments have been very proactive in tackling climate change
and embracing green energy, setting their own GHG reduction targets, and enacting green energy legislation. The
Provinces of British Columbia, Quebec, and Manitoba have introduced carbon taxes. The Provinces of Alberta and
Nova Scotia have enacted legislation limiting carbon emissions, and the Province of Quebec is in the process of
launching the first cap-and-trade system regulating green house gases.
Despite differences in the level of express commitments made,
in their collective ambition that Canada be a global energy
leader, the federal, provincial and territorial governments agree
on some basic principles: (a) energy supply diversification is
important; (b) energy efficiency and conservation improvements
are required for economic competitiveness and environmental
responsibility, and (c) aging energy infrastructure is a challenge.
They also agree that a key objective should be the accelerated
development of clean energy technologies and a workforce
skilled in those technologies. In relation to smart grid initiatives
02 Canada
Canada exported more than half of its crude oil, marketable natural gas, and coal. It is a net exporter of energy, and the gap between exports and imports is growing.
Scheduled for completion in 2013, the Smart Grid Smart City project tests demand side
response solutions, as well as new supply technologies, in a production environment with
actual customers. It is a demonstration project that gathers information about the benefits and
costs of different smart grid technologies in an Australian setting. As part of the trial, customers
will monitor their energy use and calculate energy costs and greenhouse gas emissions. They
will also be enabled with a household energy management system, giving them wireless control
of their appliances. On the grid, improved monitoring and measuring devices will improve
network reliability and efficiency as well as integrate distributed energy storage, generation, and
electric vehicles. The project includes smart sensors, new back-end IT systems, smart meters,
and a communications network. The project team will examine performance for operational,
environmental, and society/consumer benefits.
Scale Thousands of households
Type Multiple Technologies
Cost $243M
Smart Grid Smart City Organizations •CSIRO•Transgrid•Sydney Water •Hunter Water
•The University of Newcastle•The University of Sydney and the
municipalities / communities of Newcastle and Lake Macquarie
Suppliers Landis & Gyr • GE • Gridnet • IBM
In the Intelligent Network Communities project, the distributor Essential Energy
is testing network fault detection, isolation and restoration, power quality
monitoring, and distribution automation using a commercial distribution
management system. Combined with load control, this substation monitoring
and four quadrant interactive inverters for Volt/Var controls, this makes it a
complete smart grid project. Customers have also been invited to participate in
energy management trials. As part of the project, Essential Energy is also testing
advanced metering infrastructure, certain customer products and education,
distributed generation, and storage. The project team is taking an objective view
of results to ensure project benefits can be confirmed and validated. The project
is presently in its implementation stage.
intelliGent netwOrk COmmunitieSOrganization Essential Energy
Suppliers Landis & Gyr •GE •Gridnet •IBM
Scale Three 11kV feeders & 4000 consumers
Type Multiple Technologies
Cost $15 million
d. Notable Projects
> > 1716 < < The Global Smart Grid Federation 2012 REPORT
Intelligent Network Communities
Three 11kV feeders & 4000 consumers • $15M
Smart Grid Smart City Thousands of households • $243M
a. Canadian Energy Policy
Canada has the third largest proven crude oil reserves in the
world, and the federal government views them as key engines
of the Canadian economy. The current federal government has
avoided and even eliminated binding environmental or energy-
related commitments which would require it to embrace green
energy or implement any GHG emission controls. In December
2011, the Canadian government announced Canada’s withdrawal
from the Kyoto Protocol. (Previously, under the Kyoto Protocol,
Canada committed to reduce its green house gas emissions
to 6% below 1990 levels, but was not on track to meet this
obligation. ) Canada is a party to the Copenhagen Accord under
which it targets a GHG reduction of 17% below 2005 levels by
2020. This target under the Copenhagen Accord is a target only,
not a legal obligation. While it has refrained from making any
commitments which could constrain its economic development
plans, the federal government has made stimulus funds available for green initiatives, such as the Clean Energy Fund
and the ecoEnergy Innovation Initiative.
In contrast, the majority of the country’s provincial governments have been very proactive in tackling climate change
and embracing green energy, setting their own GHG reduction targets, and enacting green energy legislation. The
Provinces of British Columbia, Quebec, and Manitoba have introduced carbon taxes. The Provinces of Alberta and
Nova Scotia have enacted legislation limiting carbon emissions, and the Province of Quebec is in the process of
launching the first cap-and-trade system regulating green house gases.
Despite differences in the level of express commitments made,
in their collective ambition that Canada be a global energy
leader, the federal, provincial and territorial governments agree
on some basic principles: (a) energy supply diversification is
important; (b) energy efficiency and conservation improvements
are required for economic competitiveness and environmental
responsibility, and (c) aging energy infrastructure is a challenge.
They also agree that a key objective should be the accelerated
development of clean energy technologies and a workforce
skilled in those technologies. In relation to smart grid initiatives
02 Canada
Canada exported more than half of its crude oil, marketable natural gas, and coal. It is a net exporter of energy, and the gap between exports and imports is growing.
Scheduled for completion in 2013, the Smart Grid Smart City project tests demand side
response solutions, as well as new supply technologies, in a production environment with
actual customers. It is a demonstration project that gathers information about the benefits and
costs of different smart grid technologies in an Australian setting. As part of the trial, customers
will monitor their energy use and calculate energy costs and greenhouse gas emissions. They
will also be enabled with a household energy management system, giving them wireless control
of their appliances. On the grid, improved monitoring and measuring devices will improve
network reliability and efficiency as well as integrate distributed energy storage, generation, and
electric vehicles. The project includes smart sensors, new back-end IT systems, smart meters,
and a communications network. The project team will examine performance for operational,
environmental, and society/consumer benefits.
Scale Thousands of households
Type Multiple Technologies
Cost $243M
Smart Grid Smart City Organizations •CSIRO•Transgrid•Sydney Water •Hunter Water
•The University of Newcastle•The University of Sydney and the
municipalities / communities of Newcastle and Lake Macquarie
Suppliers Landis & Gyr • GE • Gridnet • IBM
In the Intelligent Network Communities project, the distributor Essential Energy
is testing network fault detection, isolation and restoration, power quality
monitoring, and distribution automation using a commercial distribution
management system. Combined with load control, this substation monitoring
and four quadrant interactive inverters for Volt/Var controls, this makes it a
complete smart grid project. Customers have also been invited to participate in
energy management trials. As part of the project, Essential Energy is also testing
advanced metering infrastructure, certain customer products and education,
distributed generation, and storage. The project team is taking an objective view
of results to ensure project benefits can be confirmed and validated. The project
is presently in its implementation stage.
intelliGent netwOrk COmmunitieSOrganization Essential Energy
Suppliers Landis & Gyr •GE •Gridnet •IBM
Scale Three 11kV feeders & 4000 consumers
Type Multiple Technologies
Cost $15 million
d. Notable Projects
18 < < The Global Smart Grid Federation 2012 REPORT
Transmission Dynamic Line Rating45km section of 115kV transmission circuit~$200K per 26 km line section
CANADA >> 19
specifically, the federal government cited energy capacity, efficiency,
reliability, and sustainability as drivers.
b. Electricity Sector
Electricity generation, transmission and distribution fall primarily
under provincial and territorial jurisdiction, so policymaking and
regulation occurs at this level. Electricity exports and international
and interprovincial power lines fall within federal jurisdiction. In
Canada, electricity markets fall along provincial or regional lines
and are owned, operated, and regulated by a myriad of provincial
agencies or statutory companies.
The Canadian grid is part of a North American transmission system
which is comprised of three major interconnected grids: (1) the
Eastern Interconnect, which spans the entire eastern and central
states, (2) the Western Interconnect, which spans the Pacific Rocky
Mountains and southwestern states in the U.S., and (3) the Electric
Reliability Council of Texas interconnect which includes most of the
U.S. State of Texas. In Canada, only the Provinces of Ontario and
Alberta have independent grid managers: the Ontario Independent
Electricity System Operator and the Power Pool of Alberta, respectively.
The North American Electric Reliability Council (NERC) is a non-
governmental organization based in the U.S. that ensures reliability
of the North American bulk power system through standards
development and enforcement, system monitoring, forecasting, and
training and certification programs (including those for transmission
operators, reliability coordinators, balancing authorities, and system
operators). NERC coordinates reliability with the Canadian utilities
under NERC-signed memorandums of understanding with the
National Energy Board of Canada and the Provinces of Ontario,
Quebec, and Nova Scotia. NERC has legal authority in the Provinces
of Ontario and New Brunswick, where it is overseen by the relevant
provincial governmental authorities.
Historically, the electricity sector was monopolized by provincially
owned, vertically-integrated electric utilities. Over the past decade,
the Provinces of Alberta, Ontario, British Columbia, and New
Brunswick broke out generation, transmission and distribution
into separate organizations, which are still generally owned by
government entities. These reforms vary in their degree, with the
reforms undertaken in the Province of Alberta being the most
extensive. Alberta has a fully competitive wholesale and retail market
with market-based pricing. The Province of Ontario has open access
transmission, wholesale and retail markets, but it is still heavily
regulated and still has regulated pricing. Some provinces opened up
power generation to competition by independent power producers,
particularly in renewable power generation. Only Ontario has a feed-
in-tariff program in place for renewable energy, and BC Hydro has a
Standing Offer Program in place to streamline the sales process for
small developers of clean or renewable energy.
c. Smart Meter / Smart Grid Infrastructure
Several provinces (Ontario, British Columbia, Saskatchewan,
Quebec) have implemented or intend to implement a smart meter
rollout. Of these provinces, only British Columbia has clearly
articulated its intention not to move to a time-of-use pricing system.
There are also smart grid pilots being conducted in the Provinces
of Ontario and Quebec, and other provinces and utilities are
undertaking grid modernization projects which test and incorporate
smart grid technologies.
Popular reaction to these initiatives has been mixed. Various groups
have protested smart meter implementations based on privacy
and health concerns. The Government of British Columbia and the
utilities in the Province of Ontario have engaged their respective
provincial privacy commissioners to review the privacy impact of
these meters. Canadian consumers benefit from some of the lowest
electricity prices in the developed world, particularly in provinces
where hydro-electricity is the primary source of electricity. The
introduction of these projects coincides with increases in electricity
prices. Some argue that they are the cause of the price increases.
Electricity pricing and, by association, smart metering and green
energy initiatives generally have become politicized.
SmartGrid Canada is an association which engages stakeholders
and academia from across multiple industries in an effort to build
smart grid awareness, promote research and development of new
and innovative energy technologies, and advocate for policies that
support smart grid development.
The following projects reflect Canada’s early adoption of smart grid
technologies. They are notable for their scale and the fact that they
are either completed or near completion. With so many markets
around the world starting their smart meter implementations, the
Canadian experience provides a great benchmark from which to
learn, as Canada has already implemented smart meters and time-of-
use rates for millions of customers.
d. Notable Projects
tranSmiSSiOn dynamiC line ratinG
Organization Manitoba Hydro
Suppliers The Valley Group •a Nexans company
Scale 45km section of 115kV transmission circuit
Type Network Monitoring & Telemetry
Cost ~$200K per 26 km line section
Manitoba Hydro used static rating (232 A) for a transmis-
sion circuit that had intermittent loading constraints that
caused them to curtail low cost hydro generation. They
installed a Dynamic Line Rating (DLR) System to optimize
transfer capability in 2002. After installation, the line rat-
ing was lifted 30% of the static rating for 90% of time. By
implementing this technology, Manitoba Hydro did not
need to increase its planned transmission capacity.
The government of the Province of Ontario has adopted green
energy as a key pillar of its economic growth strategy and has
become a leader in renewable energy, smart meters, and smart
grid adoption. The government initiated the country’s first smart
metering deployment, the Ontario Smart Metering Initiative, which
will install smart meters province-wide and is nearing completion with
almost 4.5M smart meters installed. Along with smart meters, the
government introduced mandatory time-of-use pricing. Ontario is the
largest electricity market in the world with mandated time-of-use rates.
OntariO Smart meterinG initiative
Organizations Hydro One •Toronto Hydro •Powerstream among others
Suppliers Trilliant •ITRON •eMETER among others
Scale 4.5M smart meters
Type Advanced Metering Infrastructure
Cost Estimated capital costs of $1 billion - net increase in annual operating costs estimated at $50 million
Hydro Québec is voltage stability limited in the Montréal
area, and this creates major constraints on power
exchanges with the United States. As Hydro Québec was
already equipped with a modern Wide-Area Monitoring
System, its own fast and reliable communication network,
they looked to establish a Wide-Area Control of their
voltage through the installation of truly interoperable
multi-vendors relays, PMUs and IEDs. The Hydro-Québec
Wide-Area Monitoring System is connected to the Energy
Management System and preemptively advises system
operators about geomagnetic storms. Playback of voltage
stability cases, simulated using PSS/E and ASTRE,
allows assessment of the performance of the overall
telecommunication chain, and the control signal
timing and accuracy across the different boxes can
be traced. The project resulted in big immediate
gains in voltage stability constrained transfer
limits and power exchanges with the United
States as well as served to defer capital
investments in dynamic reactive power
compensation infrastructure.
Pilot programs at the start of the implementation show peak shaving
of around 5-8%. The Ontario Power Authority is currently assessing
the mass market response to time-of-use rates, with a report due
later this year that is eagerly anticipated by the smart grid industry
worldwide. The increase in electricity prices precipitated by time-of-
use pricing and “green” project cost recovery has raised the ire of
some consumers. In response, the Ontario government introduced a
rebate program to assist with rising electricity costs.
Wide-Area Control System 10 PMUs~$200K per 26 km line section
Ontario Smart Metering Initiative 4.5M smart meters
$1B / annual Net increase $50M
wide-area COntrOl SyStem
Organization Hydro Quebec
Suppliers IREQ •Cooper •AREVA •ABB
Scale 10 PMUs
Type Network Monitoring & Telemetry
Cost ~$200K per 26 km line section
18 < < The Global Smart Grid Federation 2012 REPORT
Transmission Dynamic Line Rating45km section of 115kV transmission circuit~$200K per 26 km line section
CANADA >> 19
specifically, the federal government cited energy capacity, efficiency,
reliability, and sustainability as drivers.
b. Electricity Sector
Electricity generation, transmission and distribution fall primarily
under provincial and territorial jurisdiction, so policymaking and
regulation occurs at this level. Electricity exports and international
and interprovincial power lines fall within federal jurisdiction. In
Canada, electricity markets fall along provincial or regional lines
and are owned, operated, and regulated by a myriad of provincial
agencies or statutory companies.
The Canadian grid is part of a North American transmission system
which is comprised of three major interconnected grids: (1) the
Eastern Interconnect, which spans the entire eastern and central
states, (2) the Western Interconnect, which spans the Pacific Rocky
Mountains and southwestern states in the U.S., and (3) the Electric
Reliability Council of Texas interconnect which includes most of the
U.S. State of Texas. In Canada, only the Provinces of Ontario and
Alberta have independent grid managers: the Ontario Independent
Electricity System Operator and the Power Pool of Alberta, respectively.
The North American Electric Reliability Council (NERC) is a non-
governmental organization based in the U.S. that ensures reliability
of the North American bulk power system through standards
development and enforcement, system monitoring, forecasting, and
training and certification programs (including those for transmission
operators, reliability coordinators, balancing authorities, and system
operators). NERC coordinates reliability with the Canadian utilities
under NERC-signed memorandums of understanding with the
National Energy Board of Canada and the Provinces of Ontario,
Quebec, and Nova Scotia. NERC has legal authority in the Provinces
of Ontario and New Brunswick, where it is overseen by the relevant
provincial governmental authorities.
Historically, the electricity sector was monopolized by provincially
owned, vertically-integrated electric utilities. Over the past decade,
the Provinces of Alberta, Ontario, British Columbia, and New
Brunswick broke out generation, transmission and distribution
into separate organizations, which are still generally owned by
government entities. These reforms vary in their degree, with the
reforms undertaken in the Province of Alberta being the most
extensive. Alberta has a fully competitive wholesale and retail market
with market-based pricing. The Province of Ontario has open access
transmission, wholesale and retail markets, but it is still heavily
regulated and still has regulated pricing. Some provinces opened up
power generation to competition by independent power producers,
particularly in renewable power generation. Only Ontario has a feed-
in-tariff program in place for renewable energy, and BC Hydro has a
Standing Offer Program in place to streamline the sales process for
small developers of clean or renewable energy.
c. Smart Meter / Smart Grid Infrastructure
Several provinces (Ontario, British Columbia, Saskatchewan,
Quebec) have implemented or intend to implement a smart meter
rollout. Of these provinces, only British Columbia has clearly
articulated its intention not to move to a time-of-use pricing system.
There are also smart grid pilots being conducted in the Provinces
of Ontario and Quebec, and other provinces and utilities are
undertaking grid modernization projects which test and incorporate
smart grid technologies.
Popular reaction to these initiatives has been mixed. Various groups
have protested smart meter implementations based on privacy
and health concerns. The Government of British Columbia and the
utilities in the Province of Ontario have engaged their respective
provincial privacy commissioners to review the privacy impact of
these meters. Canadian consumers benefit from some of the lowest
electricity prices in the developed world, particularly in provinces
where hydro-electricity is the primary source of electricity. The
introduction of these projects coincides with increases in electricity
prices. Some argue that they are the cause of the price increases.
Electricity pricing and, by association, smart metering and green
energy initiatives generally have become politicized.
SmartGrid Canada is an association which engages stakeholders
and academia from across multiple industries in an effort to build
smart grid awareness, promote research and development of new
and innovative energy technologies, and advocate for policies that
support smart grid development.
The following projects reflect Canada’s early adoption of smart grid
technologies. They are notable for their scale and the fact that they
are either completed or near completion. With so many markets
around the world starting their smart meter implementations, the
Canadian experience provides a great benchmark from which to
learn, as Canada has already implemented smart meters and time-of-
use rates for millions of customers.
d. Notable Projects
tranSmiSSiOn dynamiC line ratinG
Organization Manitoba Hydro
Suppliers The Valley Group •a Nexans company
Scale 45km section of 115kV transmission circuit
Type Network Monitoring & Telemetry
Cost ~$200K per 26 km line section
Manitoba Hydro used static rating (232 A) for a transmis-
sion circuit that had intermittent loading constraints that
caused them to curtail low cost hydro generation. They
installed a Dynamic Line Rating (DLR) System to optimize
transfer capability in 2002. After installation, the line rat-
ing was lifted 30% of the static rating for 90% of time. By
implementing this technology, Manitoba Hydro did not
need to increase its planned transmission capacity.
The government of the Province of Ontario has adopted green
energy as a key pillar of its economic growth strategy and has
become a leader in renewable energy, smart meters, and smart
grid adoption. The government initiated the country’s first smart
metering deployment, the Ontario Smart Metering Initiative, which
will install smart meters province-wide and is nearing completion with
almost 4.5M smart meters installed. Along with smart meters, the
government introduced mandatory time-of-use pricing. Ontario is the
largest electricity market in the world with mandated time-of-use rates.
OntariO Smart meterinG initiative
Organizations Hydro One •Toronto Hydro •Powerstream among others
Suppliers Trilliant •ITRON •eMETER among others
Scale 4.5M smart meters
Type Advanced Metering Infrastructure
Cost Estimated capital costs of $1 billion - net increase in annual operating costs estimated at $50 million
Hydro Québec is voltage stability limited in the Montréal
area, and this creates major constraints on power
exchanges with the United States. As Hydro Québec was
already equipped with a modern Wide-Area Monitoring
System, its own fast and reliable communication network,
they looked to establish a Wide-Area Control of their
voltage through the installation of truly interoperable
multi-vendors relays, PMUs and IEDs. The Hydro-Québec
Wide-Area Monitoring System is connected to the Energy
Management System and preemptively advises system
operators about geomagnetic storms. Playback of voltage
stability cases, simulated using PSS/E and ASTRE,
allows assessment of the performance of the overall
telecommunication chain, and the control signal
timing and accuracy across the different boxes can
be traced. The project resulted in big immediate
gains in voltage stability constrained transfer
limits and power exchanges with the United
States as well as served to defer capital
investments in dynamic reactive power
compensation infrastructure.
Pilot programs at the start of the implementation show peak shaving
of around 5-8%. The Ontario Power Authority is currently assessing
the mass market response to time-of-use rates, with a report due
later this year that is eagerly anticipated by the smart grid industry
worldwide. The increase in electricity prices precipitated by time-of-
use pricing and “green” project cost recovery has raised the ire of
some consumers. In response, the Ontario government introduced a
rebate program to assist with rising electricity costs.
Wide-Area Control System 10 PMUs~$200K per 26 km line section
Ontario Smart Metering Initiative 4.5M smart meters
$1B / annual Net increase $50M
wide-area COntrOl SyStem
Organization Hydro Quebec
Suppliers IREQ •Cooper •AREVA •ABB
Scale 10 PMUs
Type Network Monitoring & Telemetry
Cost ~$200K per 26 km line section
EUROPE > > 21
a. Energy Policy
Under the common goals of secure, competitive and sustainable
energy supply, the European Union is determined to set its
progressive energy policy at the macro level. The European Union
is an economic and political union of twenty-seven countries that
operate through supranational institutions and intergovernmental
agreements. Its constitutional basis can be found in various
documents, most notably the Maastrict Treaty (1993) and the
Lisbon Treaty (2009). EU priorities are set by the European Council.
Policies and laws are created through a process involving the
European Parliament, the Council of the European Union and the
European Commission. The EU is made up of Austria, Belgium,
Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Poland, Portugal, Romania,
Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
The Lisbon Treaty formally codified the EU members’ common energy goals of ensuring security of supply,
competitiveness and sustainability, reflecting a determination to set energy policy at the EU level. These umbrella
goals have laid out in a series of directives, which are ambitious and far-reaching in scope. In 2007, the European
Council adopted the 20:20:20 objective of reducing GHG emissions by 20%, increasing the share of renewable
energy to 20%, and making 20% improvements in energy efficiency by year 2020. The GHG emissions and the RES
targets are binding. Specific to the electricity markets, the EU introduced the Third Legislative Package for Further
Liberalisation of the Electricity and Gas Markets (July 2009) (2009 Third Legislative Package), which obligated states to
further deregulate their electricity markets to facilitate greater supplier competition and consumer choice. These and
other EU directives form the framework in which EU member countries develop their own laws and policies pertaining
to the electricity markets.
b. Electricity Sectors
Most of the electrical grids in Europe are interconnected, which requires efforts between various jurisdictions to
harmonize policy and regulation of the electricity sector. Some wholesale electricity markets encompass several
countries. An example is the NordPool Spot exchange, which encompasses Norway, Denmark, Finland, Sweden
and Estonia. Each EU member state has its own regulatory agency for its respective electricity sector. The Council
of European Energy Regulators and the Agency for the Cooperation of Energy Regulators (ACER) were created to
facilitate, oversee, and improve cross-border regulatory cooperation for gas and electricity transmission between
member states. While ACER does not have any regulatory authority at a national or supranational level, it is
empowered to intervene if national regulators fail to cooperate effectively. At the operational level, the European
Network of Transmission System Operators for Electricity was established to harmonise grid access standards and
ensure proper network planning and investments in order to prevent blackouts.
03 europe
Historically, European electricity markets were dominated by
national or regional vertically-integrated monopolies. After significant
liberalization efforts beginning in the 1990s, it is more common
to find the generation and retailing segments open to competition
and unbundled from transmission and distribution. However, many
markets are still dominated by near-monopoly suppliers. The 2009
Third Legislative Package requires EU member states to liberalize
their electricity markets by 2011, if they have not already. In 2003, EU
directives established common rules for internal electricity markets.
At the time of writing, electricity network codes were being drafted
at the EU level in order to guarantee a fair distribution of cost and
responsibilities among market players.
c. Smart Meter / Smart Grid Infrastructure
The EU has enacted legislation regarding the smart grid and smart
metering, most notably Electricity Directive 2009/752/EC, which
requires EU member states to implement smart metering systems
by 2020 where economic assessments of smart meters are positive.
Because of the varying characteristics of their respective electricity
sectors, EU members are addressing smart meter rollout and cost-
recovery individually. Other notable pieces of legislation specific to
smart metering include the 2009 Third Legislative Package, Directive
2005/89/EC (Security of Supply), Directive 2006/32/EC (Energy
End-use Efficiency and Energy Services), and Directive 2004/22/EC
d. Notable Projects
(Measuring Instruments). In 2011, 10% of the EU households had
some sort of smart meter installed. It is expected that this number
will reach 100 million by 2016.
The EU is actively developing smart grid deployment plans. In January
2009, the European Commission launched a Task Force on Smart
Grids which is to advise on policy and regulatory direction and to
coordinate the first steps towards smart grid implementation under
the provisions of the 2009 Third Legislative Package. In nearly all EU
member states, significant investments have been made to test the
integration of smart grid technologies and applications into the energy
framework. The EU itself has invested approximately 300 million in
smart grid projects in the last decade. In 2010, at the recommendation
of transmission and distribution network operators, the European
Commission established the European Electricity Grid Initiative
(EEGI), a 9-year, €2 billion research and development program.
The EDSO for Smart Grids is an association of distribution system
operators from seventeen EU member states, covering 70% of the
EU points of electricity supply. The association is committed to
promoting modernization of the electricity grid to achieve the EU’s
targets for energy efficiency, GHG reduction, and renewable energy.
It liaises between public authorities and its membership on matters
pertaining to the smart grid. The projects profiled below are a sample
of the initiatives that the EDSO for Smart Grid has enabled or
supported through its activities.
Organizations
ADDRESS is a demonstration project scheduled for completion in June 2012. The project adopts a
“demand approach” (rather than “generation approach”) in an attempt to draw small and commercial
consumer participation in the power system through innovative commercial arrangements. It encourages
consumers to provide services to different power system participants based on price and/or volume
signal mechanisms. This exchange is facilitated by a technology installed at the customer property or at
the aggregator. The project aims to improve flexibility in consumer behavior; enhance system reliability,
safety and efficiency; and create the foundation for profitable power economy, which leads to more
competition and lower energy prices.
addreSS (aCtive diStributiOn netwOrk with full inteGratiOn Of demand and diStributed enerGy reSOurCeS)
•The utilities UK Power Networks•Enel Dustribuzione•Iberdrola Distribucion•Vattenfall•the energy suppliers Enel Distributie
Dobrogea and Electricité de France•the universities and research
institutes of Università degli Studi di Cassino•Universidad Pontifical Comillas•Consentec
•Enel Ingegneria ed Innovazione SpA - Research division•Kema Nederland•Fundación Tecnalia Research
& Innovation•University of Manchester•Università degli Studi di Siena•VITO NV•VTT
Scale Demonstration project involving 400 customers.
Type Multiple Technologies
Cost €16 million.
Suppliers •ABB•Landis & Gyr•ZIV PmasC•Electrolux Italia
•Philips Electronics Nederland•RLtec•Alacatel Lucent Italia
•Current•Ericsson Espana
20 < <
EUROPE > > 21
a. Energy Policy
Under the common goals of secure, competitive and sustainable
energy supply, the European Union is determined to set its
progressive energy policy at the macro level. The European Union
is an economic and political union of twenty-seven countries that
operate through supranational institutions and intergovernmental
agreements. Its constitutional basis can be found in various
documents, most notably the Maastrict Treaty (1993) and the
Lisbon Treaty (2009). EU priorities are set by the European Council.
Policies and laws are created through a process involving the
European Parliament, the Council of the European Union and the
European Commission. The EU is made up of Austria, Belgium,
Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Poland, Portugal, Romania,
Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
The Lisbon Treaty formally codified the EU members’ common energy goals of ensuring security of supply,
competitiveness and sustainability, reflecting a determination to set energy policy at the EU level. These umbrella
goals have laid out in a series of directives, which are ambitious and far-reaching in scope. In 2007, the European
Council adopted the 20:20:20 objective of reducing GHG emissions by 20%, increasing the share of renewable
energy to 20%, and making 20% improvements in energy efficiency by year 2020. The GHG emissions and the RES
targets are binding. Specific to the electricity markets, the EU introduced the Third Legislative Package for Further
Liberalisation of the Electricity and Gas Markets (July 2009) (2009 Third Legislative Package), which obligated states to
further deregulate their electricity markets to facilitate greater supplier competition and consumer choice. These and
other EU directives form the framework in which EU member countries develop their own laws and policies pertaining
to the electricity markets.
b. Electricity Sectors
Most of the electrical grids in Europe are interconnected, which requires efforts between various jurisdictions to
harmonize policy and regulation of the electricity sector. Some wholesale electricity markets encompass several
countries. An example is the NordPool Spot exchange, which encompasses Norway, Denmark, Finland, Sweden
and Estonia. Each EU member state has its own regulatory agency for its respective electricity sector. The Council
of European Energy Regulators and the Agency for the Cooperation of Energy Regulators (ACER) were created to
facilitate, oversee, and improve cross-border regulatory cooperation for gas and electricity transmission between
member states. While ACER does not have any regulatory authority at a national or supranational level, it is
empowered to intervene if national regulators fail to cooperate effectively. At the operational level, the European
Network of Transmission System Operators for Electricity was established to harmonise grid access standards and
ensure proper network planning and investments in order to prevent blackouts.
03 europe
Historically, European electricity markets were dominated by
national or regional vertically-integrated monopolies. After significant
liberalization efforts beginning in the 1990s, it is more common
to find the generation and retailing segments open to competition
and unbundled from transmission and distribution. However, many
markets are still dominated by near-monopoly suppliers. The 2009
Third Legislative Package requires EU member states to liberalize
their electricity markets by 2011, if they have not already. In 2003, EU
directives established common rules for internal electricity markets.
At the time of writing, electricity network codes were being drafted
at the EU level in order to guarantee a fair distribution of cost and
responsibilities among market players.
c. Smart Meter / Smart Grid Infrastructure
The EU has enacted legislation regarding the smart grid and smart
metering, most notably Electricity Directive 2009/752/EC, which
requires EU member states to implement smart metering systems
by 2020 where economic assessments of smart meters are positive.
Because of the varying characteristics of their respective electricity
sectors, EU members are addressing smart meter rollout and cost-
recovery individually. Other notable pieces of legislation specific to
smart metering include the 2009 Third Legislative Package, Directive
2005/89/EC (Security of Supply), Directive 2006/32/EC (Energy
End-use Efficiency and Energy Services), and Directive 2004/22/EC
d. Notable Projects
(Measuring Instruments). In 2011, 10% of the EU households had
some sort of smart meter installed. It is expected that this number
will reach 100 million by 2016.
The EU is actively developing smart grid deployment plans. In January
2009, the European Commission launched a Task Force on Smart
Grids which is to advise on policy and regulatory direction and to
coordinate the first steps towards smart grid implementation under
the provisions of the 2009 Third Legislative Package. In nearly all EU
member states, significant investments have been made to test the
integration of smart grid technologies and applications into the energy
framework. The EU itself has invested approximately 300 million in
smart grid projects in the last decade. In 2010, at the recommendation
of transmission and distribution network operators, the European
Commission established the European Electricity Grid Initiative
(EEGI), a 9-year, €2 billion research and development program.
The EDSO for Smart Grids is an association of distribution system
operators from seventeen EU member states, covering 70% of the
EU points of electricity supply. The association is committed to
promoting modernization of the electricity grid to achieve the EU’s
targets for energy efficiency, GHG reduction, and renewable energy.
It liaises between public authorities and its membership on matters
pertaining to the smart grid. The projects profiled below are a sample
of the initiatives that the EDSO for Smart Grid has enabled or
supported through its activities.
Organizations
ADDRESS is a demonstration project scheduled for completion in June 2012. The project adopts a
“demand approach” (rather than “generation approach”) in an attempt to draw small and commercial
consumer participation in the power system through innovative commercial arrangements. It encourages
consumers to provide services to different power system participants based on price and/or volume
signal mechanisms. This exchange is facilitated by a technology installed at the customer property or at
the aggregator. The project aims to improve flexibility in consumer behavior; enhance system reliability,
safety and efficiency; and create the foundation for profitable power economy, which leads to more
competition and lower energy prices.
addreSS (aCtive diStributiOn netwOrk with full inteGratiOn Of demand and diStributed enerGy reSOurCeS)
•The utilities UK Power Networks•Enel Dustribuzione•Iberdrola Distribucion•Vattenfall•the energy suppliers Enel Distributie
Dobrogea and Electricité de France•the universities and research
institutes of Università degli Studi di Cassino•Universidad Pontifical Comillas•Consentec
•Enel Ingegneria ed Innovazione SpA - Research division•Kema Nederland•Fundación Tecnalia Research
& Innovation•University of Manchester•Università degli Studi di Siena•VITO NV•VTT
Scale Demonstration project involving 400 customers.
Type Multiple Technologies
Cost €16 million.
Suppliers •ABB•Landis & Gyr•ZIV PmasC•Electrolux Italia
•Philips Electronics Nederland•RLtec•Alacatel Lucent Italia
•Current•Ericsson Espana
20 < <
22 < < The Global Smart Grid Federation 2012 REPORT EUROPE > > 23
GREEN eMOTION9 electric mobility demonstration projects • € 24.2M
ADDRESS400 customers • €16M
ECOGRID28,000 residential customers •300 large customers & 56MW renewable generation €21M
GRID4EU R&D pilot with 6 demonstration sites • €54M
Green emOtiOn
The Green eMotion project will connect ongoing regional and national electric mobility initiatives leveraging the
results and comparing different technology approaches to ensure the best solution is used for Europe. The project
intends to create a virtual marketplace which permits transactions in this area, complete with billing functionalities.
The nine demonstration projects acorss Europe all have different scope and they include hybrid vehicles, DC charging
stations, optimized bidirectional charging, V2G, B2G, kWh billing systems, cross-border roaming, battery swapping,
electric mobility service citizen officers, e-motorbikes, EVS27, and alternative business model testing. The project also
intends to demonstrate the integration of electro-mobility into electrical networks and contribute to the improvement
and development of new and existing standards for electro-mobility interfaces. As part of the project, the team will
assess different EV charging solutions and the impact of various EVs on the grid. The hope is that new business
models based on consumer behavior will develop from this system-level approach . The project is scheduled for
completion in 2015.
Organizations•Danish Energy Association •EDF •Endesa •Enel •ESB •Eurelectric •Iberdrola
•RWE •PPC and the
municipalities of Barcelona •Berlin •Bornholm
•Copenhagen •Cork •Dublin •Malaga •Malmö •Rome
Suppliers•Alstom •Better Place •Bosch •IBM •SAP •Siemens
•BMW •Daimler •Micro-Vett •Nissan •Renault •Cartif
•Cidaut •CTL •DTU •ECN •Imperial •IREC
•RSE •TCD •Tecnalia •DTI •FKA •TÜV Nord
Scale 9 electric mobility demonstration projects across Europe
Type Multiple Technologies
Cost €24,2 million
Grid4euOrganizations•ERDF •Enel •Vattenfall Eldistribution
Scheduled for completion in 2016, the Grid4EU project is intended to showcase Europe’s “state of the art” smart grid
developments. In six demonstration sites, the project will integrate increased distributed generation, provide active
demand into distribution networks, and improve distribution networks. The project hopes to: (1) contribute to the
integration of distributed generation into medium and low voltage networks, achieving higher reliability, shorter recovery
times and avoiding unknown overloads; (2) evaluate losses (technical and non-technical) by comparing substation
totals with the accumulated customer totals, hour per hour; (3) improve information distribution to customers and
study consumer behavior in the face of system constraints (particularly during peak photovoltaic hours); (4) reinforce
high voltage network controls through monitoring and effective fault detection and automatic restoration; and (5)
demonstrate that existing networks with smart metering and combined heat & power units can be upgraded to allow
automatic islanding.
•Cez Distribuce •Rwe •Iberdrola
•EDF •Iberdrola Generacion •Cez
Suppliers•ABB •Alstom Grid •Cisco •Current •Emeter •Itron •Landis&Gyr
•Ormazabal •Selta •Siemens •Telvent •Ziv •the universities /
research institutes Armines
•Comillas•Tud •Rse •Kth •KulScale R&D pilot with 6 demonstration sites.
Type Multiple Technologies
Cost €54 million
The project is a “fast-track” initiative to implement market-based smart grids. Two thousand residential consumers
will be equipped with residential demand response devices using gateways and “smart” controllers. These devices will
present real-time prices to consumers and allow them to pre-program their automatic demand response preferences.
A real-time market concept will be developed to give small end-users of electricity and distributed renewable energy
sources new options and potential economic benefits for offering network operators additional balancing and ancillary
services. The first area to implement it is the Nordic power market system. Scheduled for completion in 2014, this
project is the first of its kind on a power system with more than 50% renewable energy sources. It aims to offer network
operators better balancing services and provide consumers and producers greater opportunities to participate in the
power market through real-time operation, energy storage and savings.
eCOGrid
Organizations•DSOs Energinet.dk •ELIA •EDP •Østkraft •EANDIS (+ORES) •Center for Electric
Technology
Scale 28,000 residential customers, 300 large customers & 56MW renewable generation
Type Multiple Technologies
Cost €21 Million
•DTU •Austrian Institute of Technology •Tallinn University of Technology (TUT) •SINTEF ER •Tecnalia •ECN•TNO
Suppliers Siemens •IBM •Landis+Gyr
over
22 < < The Global Smart Grid Federation 2012 REPORT EUROPE > > 23
GREEN eMOTION9 electric mobility demonstration projects • € 24.2M
ADDRESS400 customers • €16M
ECOGRID28,000 residential customers •300 large customers & 56MW renewable generation €21M
GRID4EU R&D pilot with 6 demonstration sites • €54M
Green emOtiOn
The Green eMotion project will connect ongoing regional and national electric mobility initiatives leveraging the
results and comparing different technology approaches to ensure the best solution is used for Europe. The project
intends to create a virtual marketplace which permits transactions in this area, complete with billing functionalities.
The nine demonstration projects acorss Europe all have different scope and they include hybrid vehicles, DC charging
stations, optimized bidirectional charging, V2G, B2G, kWh billing systems, cross-border roaming, battery swapping,
electric mobility service citizen officers, e-motorbikes, EVS27, and alternative business model testing. The project also
intends to demonstrate the integration of electro-mobility into electrical networks and contribute to the improvement
and development of new and existing standards for electro-mobility interfaces. As part of the project, the team will
assess different EV charging solutions and the impact of various EVs on the grid. The hope is that new business
models based on consumer behavior will develop from this system-level approach . The project is scheduled for
completion in 2015.
Organizations•Danish Energy Association •EDF •Endesa •Enel •ESB •Eurelectric •Iberdrola
•RWE •PPC and the
municipalities of Barcelona •Berlin •Bornholm
•Copenhagen •Cork •Dublin •Malaga •Malmö •Rome
Suppliers•Alstom •Better Place •Bosch •IBM •SAP •Siemens
•BMW •Daimler •Micro-Vett •Nissan •Renault •Cartif
•Cidaut •CTL •DTU •ECN •Imperial •IREC
•RSE •TCD •Tecnalia •DTI •FKA •TÜV Nord
Scale 9 electric mobility demonstration projects across Europe
Type Multiple Technologies
Cost €24,2 million
Grid4euOrganizations•ERDF •Enel •Vattenfall Eldistribution
Scheduled for completion in 2016, the Grid4EU project is intended to showcase Europe’s “state of the art” smart grid
developments. In six demonstration sites, the project will integrate increased distributed generation, provide active
demand into distribution networks, and improve distribution networks. The project hopes to: (1) contribute to the
integration of distributed generation into medium and low voltage networks, achieving higher reliability, shorter recovery
times and avoiding unknown overloads; (2) evaluate losses (technical and non-technical) by comparing substation
totals with the accumulated customer totals, hour per hour; (3) improve information distribution to customers and
study consumer behavior in the face of system constraints (particularly during peak photovoltaic hours); (4) reinforce
high voltage network controls through monitoring and effective fault detection and automatic restoration; and (5)
demonstrate that existing networks with smart metering and combined heat & power units can be upgraded to allow
automatic islanding.
•Cez Distribuce •Rwe •Iberdrola
•EDF •Iberdrola Generacion •Cez
Suppliers•ABB •Alstom Grid •Cisco •Current •Emeter •Itron •Landis&Gyr
•Ormazabal •Selta •Siemens •Telvent •Ziv •the universities /
research institutes Armines
•Comillas•Tud •Rse •Kth •KulScale R&D pilot with 6 demonstration sites.
Type Multiple Technologies
Cost €54 million
The project is a “fast-track” initiative to implement market-based smart grids. Two thousand residential consumers
will be equipped with residential demand response devices using gateways and “smart” controllers. These devices will
present real-time prices to consumers and allow them to pre-program their automatic demand response preferences.
A real-time market concept will be developed to give small end-users of electricity and distributed renewable energy
sources new options and potential economic benefits for offering network operators additional balancing and ancillary
services. The first area to implement it is the Nordic power market system. Scheduled for completion in 2014, this
project is the first of its kind on a power system with more than 50% renewable energy sources. It aims to offer network
operators better balancing services and provide consumers and producers greater opportunities to participate in the
power market through real-time operation, energy storage and savings.
eCOGrid
Organizations•DSOs Energinet.dk •ELIA •EDP •Østkraft •EANDIS (+ORES) •Center for Electric
Technology
Scale 28,000 residential customers, 300 large customers & 56MW renewable generation
Type Multiple Technologies
Cost €21 Million
•DTU •Austrian Institute of Technology •Tallinn University of Technology (TUT) •SINTEF ER •Tecnalia •ECN•TNO
Suppliers Siemens •IBM •Landis+Gyr
over
GREAT BRITAIN > > 25
a. British Energy Policy
On July 12, 2011, the British government published its Electricity
Market Reform white paper. In this document, the government
identified principal drivers for reform, such as (1) expected
increases in electricity demand and electricity prices, (2) the
threatened security of the nation’s electricity supply, and (3)
the government targets of 15% renewable energy by 2020, 80%
carbon reduction on 1990 levels by 2050, and decreased reliance
on imported fossil fuels.
As electricity prices have continued to rise since 2005, the British
government focused on green energy and energy sector reform.
The long-term strategies are designed to mitigate future price
increases as well as to secure an energy supply that continues to
meet the needs of industry and the general population. Some of
the reform measures the government has taken, or is considering,
include new feed-in-tariffs, a carbon price floor, and emissions
performance standards for new fossil-fuel power stations.
The government’s concern regarding energy security is based in part on declining North Sea oil and gas reserves, the
anticipated closure of coal-fired capacity around 2015 due to tighter environmental regulation, and the anticipated
closure of certain nuclear power stations as they reach the end of their productive lives. Around 20 GW of existing
electricity generation facilities will be lost by the end of this decade.
The government’s renewable and decarbonisation targets reflect the United Kingdom’s obligations under various
EU instruments and under the Kyoto Protocol to reduce CO2 emissions by an average of 12.5% from base year levels
between 2008 and 2012. The UK 2008 Climate Change Act set a target to reduce CO2 emissions by 34% by 2020 and
80% from 1990 levels by 2050.
The British Parliament is considering legislation based on the 2011 Electricity Market Reform white paper, which is
expected to be enacted in 2013. It sets out the government’s commitment to transform the electricity system in order
to ensure that future electricity supply is secure, low-carbon, and affordable.
b. Electricity Sector
Energy policy is set by the Department of Energy and Climate Change (DECC). The Office of Gas and Electricity
Market (Ofgem) is the national regulator. Ofgem exercises price controls over electric transmission and distribution
services, through a process that involves approving operations and investment expenditures. The National Grid
Electricity Transmission plc is the system operator and is responsible for ensuring operational security. It is part of an
international group of companies owned by National Grid plc, a publicly-traded energy company.
The electricity sector in Great Britain has undergone significant deregulation. Great Britain is the first European
country to privatize state-owned entities in the industry and separate transmission from generation. The transmission
04 Great Britain
network for England and Wales is owned and operated by National
Grid Electricity Transmission plc. The Scottish transmission grid
is mostly owned by SP Transmission Limited and Scottish Hydro
Electric Transmission Limited. The National Grid operates some
high voltage transmission networks in Scotland. The distribution
networks are owned by various companies that have geographic
monopolies over their service territories. In Scotland, distributors are
vertically integrated with the transmitters and generators. This is not
the case in the rest of Great Britain. The retail market for electricity
is private and competitive. Pricing is fixed and competitive between
the retailers. A variety of pricing schemes are available for consumers
to choose from, including fixed, variable, and based on a time-of-use
schedule (day/night rates referred to as “Economy 7” pricing).
c. Smart Meter and Smart Grid Infrastructure
As an EU member, the United Kingdom is subject to all of the
EU directives, including the 2003 EU Electricity Market Directive
that requires member states to define implementation plans and
timetables for smart metering systems by September 3, 2012. It also
indicates that member states should address regulatory incentives
for smart grids.
The British government is undertaking a nation-wide rollout of smart
meters, which is to begin in 2014 and end in 2019. Specifications
are in the process of being finalized. It is anticipated that 53
million gas and electricity meters will be installed during this time.
There has been public consultation on the planned smart meter
implementation. The government has refrained from making smart
meters mandatory and is presently considering how to best address
the privacy of electricity usage data.
The previous British government signaled its commitment to
smart grid through the publication of its 2009 paper, “Smart
Grids: The Opportunity”. While the current British government has
not yet adopted a formal overarching policy on the smart grid, it
assembled an Electricity Future Networks Strategy Group in 2009.
Chaired by the DECC and Ofgem, the group facilitates discussion
and cooperation between government and stakeholders in electric
networks. They have published a smart grid vision and roadmap to
test the feasibility, costs, and benefits of smart grid technology. In
addition to this, DECC and Ofgem launched the Smart Grid Forum
in 2011, bringing together industry experts to look into the key policy,
commercial, and technical challenges facing the deployment of smart
grid in Britain.
The government is also actively encouraging smart grid investments
through a handful of government funds. In 2005, Ofgem introduced
the Innovation Funding Incentive to encourage distribution network
operators to invest in research and development in the technical
development of their distribution grids. Ofgem also manages the
Low Carbon Networks Fund that provides grants through innovative
commercial arrangements to distribution network operators to
implement carbon technologies into their distribution networks.
These initiatives are driving considerable interest in smart grid
development in the United Kingdom.
Industry is engaged with the government on smart grid matters;
for example, the six major British retailers are working closely with
Ofgem on a customer engagement strategy for the smart meter
rollout. Consumer engagement is limited to only discrete parts of the
smart grid, but not the smart grid as a whole concept. Increasingly,
industry participants believe that this must change for the smart grid
to succeed.
SmartGrid GB, launched in 2011 by the Minister of State for Energy
and Climate Change, is a membership organization for stakeholders
involved in smart grid development in Britain. Its membership
includes three of the big six energy retailers, two network operators,
and a host of large technology and professional services companies.
DECC, Ofgem, and Consumer Focus are members of the group.
SmartGrid GB serves as an important independent forum for
information sharing and consultation, which helps shape government
policy and make the British smart grid a reality.
The two projects we profile below are very different. The first is an
ambitious project in a global capital, which encompasses all players
in the power system and requires impressive coordination between
many different players. The second involves the integration of an
innovative energy storage solution into the distribution network as a
discrete piece of smart grid technology.
Together with Northern Ireland, Great Britain is a net importer of energy with a dependency level of 28%. The British government expects electricity demand to rise due to the anticipated electrification of transportation, heating and other carbon-intensive sectors furthering its dependency on energy imports.
24 < <
GREAT BRITAIN > > 25
a. British Energy Policy
On July 12, 2011, the British government published its Electricity
Market Reform white paper. In this document, the government
identified principal drivers for reform, such as (1) expected
increases in electricity demand and electricity prices, (2) the
threatened security of the nation’s electricity supply, and (3)
the government targets of 15% renewable energy by 2020, 80%
carbon reduction on 1990 levels by 2050, and decreased reliance
on imported fossil fuels.
As electricity prices have continued to rise since 2005, the British
government focused on green energy and energy sector reform.
The long-term strategies are designed to mitigate future price
increases as well as to secure an energy supply that continues to
meet the needs of industry and the general population. Some of
the reform measures the government has taken, or is considering,
include new feed-in-tariffs, a carbon price floor, and emissions
performance standards for new fossil-fuel power stations.
The government’s concern regarding energy security is based in part on declining North Sea oil and gas reserves, the
anticipated closure of coal-fired capacity around 2015 due to tighter environmental regulation, and the anticipated
closure of certain nuclear power stations as they reach the end of their productive lives. Around 20 GW of existing
electricity generation facilities will be lost by the end of this decade.
The government’s renewable and decarbonisation targets reflect the United Kingdom’s obligations under various
EU instruments and under the Kyoto Protocol to reduce CO2 emissions by an average of 12.5% from base year levels
between 2008 and 2012. The UK 2008 Climate Change Act set a target to reduce CO2 emissions by 34% by 2020 and
80% from 1990 levels by 2050.
The British Parliament is considering legislation based on the 2011 Electricity Market Reform white paper, which is
expected to be enacted in 2013. It sets out the government’s commitment to transform the electricity system in order
to ensure that future electricity supply is secure, low-carbon, and affordable.
b. Electricity Sector
Energy policy is set by the Department of Energy and Climate Change (DECC). The Office of Gas and Electricity
Market (Ofgem) is the national regulator. Ofgem exercises price controls over electric transmission and distribution
services, through a process that involves approving operations and investment expenditures. The National Grid
Electricity Transmission plc is the system operator and is responsible for ensuring operational security. It is part of an
international group of companies owned by National Grid plc, a publicly-traded energy company.
The electricity sector in Great Britain has undergone significant deregulation. Great Britain is the first European
country to privatize state-owned entities in the industry and separate transmission from generation. The transmission
04 Great Britain
network for England and Wales is owned and operated by National
Grid Electricity Transmission plc. The Scottish transmission grid
is mostly owned by SP Transmission Limited and Scottish Hydro
Electric Transmission Limited. The National Grid operates some
high voltage transmission networks in Scotland. The distribution
networks are owned by various companies that have geographic
monopolies over their service territories. In Scotland, distributors are
vertically integrated with the transmitters and generators. This is not
the case in the rest of Great Britain. The retail market for electricity
is private and competitive. Pricing is fixed and competitive between
the retailers. A variety of pricing schemes are available for consumers
to choose from, including fixed, variable, and based on a time-of-use
schedule (day/night rates referred to as “Economy 7” pricing).
c. Smart Meter and Smart Grid Infrastructure
As an EU member, the United Kingdom is subject to all of the
EU directives, including the 2003 EU Electricity Market Directive
that requires member states to define implementation plans and
timetables for smart metering systems by September 3, 2012. It also
indicates that member states should address regulatory incentives
for smart grids.
The British government is undertaking a nation-wide rollout of smart
meters, which is to begin in 2014 and end in 2019. Specifications
are in the process of being finalized. It is anticipated that 53
million gas and electricity meters will be installed during this time.
There has been public consultation on the planned smart meter
implementation. The government has refrained from making smart
meters mandatory and is presently considering how to best address
the privacy of electricity usage data.
The previous British government signaled its commitment to
smart grid through the publication of its 2009 paper, “Smart
Grids: The Opportunity”. While the current British government has
not yet adopted a formal overarching policy on the smart grid, it
assembled an Electricity Future Networks Strategy Group in 2009.
Chaired by the DECC and Ofgem, the group facilitates discussion
and cooperation between government and stakeholders in electric
networks. They have published a smart grid vision and roadmap to
test the feasibility, costs, and benefits of smart grid technology. In
addition to this, DECC and Ofgem launched the Smart Grid Forum
in 2011, bringing together industry experts to look into the key policy,
commercial, and technical challenges facing the deployment of smart
grid in Britain.
The government is also actively encouraging smart grid investments
through a handful of government funds. In 2005, Ofgem introduced
the Innovation Funding Incentive to encourage distribution network
operators to invest in research and development in the technical
development of their distribution grids. Ofgem also manages the
Low Carbon Networks Fund that provides grants through innovative
commercial arrangements to distribution network operators to
implement carbon technologies into their distribution networks.
These initiatives are driving considerable interest in smart grid
development in the United Kingdom.
Industry is engaged with the government on smart grid matters;
for example, the six major British retailers are working closely with
Ofgem on a customer engagement strategy for the smart meter
rollout. Consumer engagement is limited to only discrete parts of the
smart grid, but not the smart grid as a whole concept. Increasingly,
industry participants believe that this must change for the smart grid
to succeed.
SmartGrid GB, launched in 2011 by the Minister of State for Energy
and Climate Change, is a membership organization for stakeholders
involved in smart grid development in Britain. Its membership
includes three of the big six energy retailers, two network operators,
and a host of large technology and professional services companies.
DECC, Ofgem, and Consumer Focus are members of the group.
SmartGrid GB serves as an important independent forum for
information sharing and consultation, which helps shape government
policy and make the British smart grid a reality.
The two projects we profile below are very different. The first is an
ambitious project in a global capital, which encompasses all players
in the power system and requires impressive coordination between
many different players. The second involves the integration of an
innovative energy storage solution into the distribution network as a
discrete piece of smart grid technology.
Together with Northern Ireland, Great Britain is a net importer of energy with a dependency level of 28%. The British government expects electricity demand to rise due to the anticipated electrification of transportation, heating and other carbon-intensive sectors furthering its dependency on energy imports.
24 < <
> > 2726 < < The Global Smart Grid Federation 2012 REPORT
a. Energy Policies
In this report, we have opted to address the Republic of Ireland
and Northern Ireland in the same section because, while they are
separate states, their grids are interconnected and their respective
governing bodies are attempting to harmonize their regulation
and coordinate energy policies. Northern Ireland is a distinct
self-governing division of the United Kingdom with its own
devolved government (Northern Ireland Executive) and parliament
(Northern Ireland Assembly).
For both governments, energy policy is driven by security,
sustainability, and competitiveness of energy supply for the
economy and society. As members of the EU who are also subject
to the Kyoto Protocol, their energy policies are very much shaped
by international commitments, in addition to these drivers. Under
the Kyoto Protocol, the Republic of Ireland is bound to limit its
greenhouse gas emissions to 13% above 1990 levels. And as a
member of the EU, the Republic of Ireland is also subject to EU Directives. Energy policies are set out in a series of
energy policy documents, including the Energy White Paper (2007). As part of the United Kingdom, Northern Ireland
is bound by the UK’s commitments made under the Kyoto Protocol and as an EU member. Northern Ireland’s energy
policy is set out in the Northern Ireland Strategic Energy Framework (2010).
The governments’ all-island renewable energy policy is presented in the document entitled “All-Island Energy Market-
Renewable Electricity: A 2020 Vision”. Both have set a target of 40% electricity consumption from renewable sources
by 2020. Significant growth in onshore wind resources is keeping them on track to achieve this goal. Each government
has already introduced premium pricing for renewable generation – the “Renewables Obligation” in Northern Ireland
the “Renewable Energy Feed in Tariff” in the Republic of Ireland.
b. Electricity Sector
On the Island of Ireland, trends point to an all-island, deregulated electricity sector. However, the electricity sectors
are highly integrated. Their governing energy policies are closely coordinated by the Republic of Ireland Department
of Communications, Energy and Natural Resources and the Northern Ireland Department of Enterprise, Trade
and Investment. Policy is informed by the planning arm of the Republic of Ireland government, the Sustainable
05 Republic of Ireland & Northern Ireland
Organizations•UK Power Networks•Mayor of London•Transport for London•Greater London Authority•Institute for Sustainability,
Organizations
Slough Heat & Power •The University of Leeds •NTR
Supplier Highview Power Storage
The Low Carbon London Project is a four-year demonstration
project integrating a number of low carbon technologies
into the distribution network and taking a holistic view of the
distribution network operator’s business, while still focusing
on the customer experience. Technologies include photovoltaic
installations, residential smart meters, electric vehicles and
charging stations, heat pumps, and a centralized distribution
management system working with decentralized active network
management units. The integration and interaction between
these technologies and the distribution network will be closely
studied. As part of this demonstration project, the utility UK
Power Networks will also be piloting 3 separate retail tariff
systems: static (pre-determined rates based on static time
frames), dynamic (reflecting actual power availability), and
Slough Heat & Power has integrated into the National Grid the world’s first cryogenic
energy storage solution at its power station in Reading, Berkshire. Designed by Highview
Power Storage, the pilot demonstrator is currently operational and regularly exports
electricity to the National Grid at system peaks. The solution takes electricity from a nearby
biomass plant, stores it at a low pressure in above ground tanks, and uses it to liquefy air
by cooling it to -200°C. Energy is then released and supplied back to the National Grid by
evaporating the cryogenic fluid and using the resulting gas to drive turbine generators.
Waste or ambient heat can be used in the evaporation process, and the cold energy from
the exhaust can be stored and reused to liquefy more air. The full system returns about 50-
70% of the energy put in, depending on its use of waste heat. This is similar in efficiency to
compressed air storage, however, cryogenic energy storage is modular, scalable, portable,
and highly configurable, using commercially
available components in an innovative manner
that is not subject to geological constraints.
This is the first cryogenic storage unit
in the world connected to a grid and in
compliance with regulations.
lOw CarbOn lOndOn
CryOGeniC enerGy StOraGe PilOt
<< LOW CARBON LONDON5000 smart meters •100 electric vehicles •1500 electric vehicle charging posts •10 active network management units •60 distributed generators •24 MWs demand£30M
Cryogenic Energy Storage Pilot350kW/2.5MWh cryogenic energy storage£ 7.6M
Scale 5000 smart meters, 100 electric vehicles, 1500 electric vehicle charging posts, 10 active network management units, 60 distributed generators, 24 MWs demand
Type Multiple Technologies
Cost £30 million
Scale 350kW/2.5MWh cryogenic energy storage
Type Energy Storage
Cost £7.6 million
dynamic wind twinned (reflecting near real-time dynamic load
patterns). The design stage of the project is coming to a close,
and there are some early technology deployments already in
place. The team has concluded that a heat/gas perspective
must be taken into consideration when trying to achieve low
carbon goals. The distribution network operator was also able
to establish trust with industrial customers and commercial
generators, providing UK Power Networks with active network
management ability over the distributed generation output. The
project team intends to have all trials fully deployed by June
2012. For the period up to June 30, 2014, the project is expected
to yield total benefits of almost £2 million through avoided and
deferred network reinforcement.
>>
d. Notable Projects
•Imperial College London•National Grid•Imperial College London
•EDF Energy
Suppliers Logica •Siemens •Smarter Grid Solutions •EnerNoc •Flexitricity
> > 2726 < < The Global Smart Grid Federation 2012 REPORT
a. Energy Policies
In this report, we have opted to address the Republic of Ireland
and Northern Ireland in the same section because, while they are
separate states, their grids are interconnected and their respective
governing bodies are attempting to harmonize their regulation
and coordinate energy policies. Northern Ireland is a distinct
self-governing division of the United Kingdom with its own
devolved government (Northern Ireland Executive) and parliament
(Northern Ireland Assembly).
For both governments, energy policy is driven by security,
sustainability, and competitiveness of energy supply for the
economy and society. As members of the EU who are also subject
to the Kyoto Protocol, their energy policies are very much shaped
by international commitments, in addition to these drivers. Under
the Kyoto Protocol, the Republic of Ireland is bound to limit its
greenhouse gas emissions to 13% above 1990 levels. And as a
member of the EU, the Republic of Ireland is also subject to EU Directives. Energy policies are set out in a series of
energy policy documents, including the Energy White Paper (2007). As part of the United Kingdom, Northern Ireland
is bound by the UK’s commitments made under the Kyoto Protocol and as an EU member. Northern Ireland’s energy
policy is set out in the Northern Ireland Strategic Energy Framework (2010).
The governments’ all-island renewable energy policy is presented in the document entitled “All-Island Energy Market-
Renewable Electricity: A 2020 Vision”. Both have set a target of 40% electricity consumption from renewable sources
by 2020. Significant growth in onshore wind resources is keeping them on track to achieve this goal. Each government
has already introduced premium pricing for renewable generation – the “Renewables Obligation” in Northern Ireland
the “Renewable Energy Feed in Tariff” in the Republic of Ireland.
b. Electricity Sector
On the Island of Ireland, trends point to an all-island, deregulated electricity sector. However, the electricity sectors
are highly integrated. Their governing energy policies are closely coordinated by the Republic of Ireland Department
of Communications, Energy and Natural Resources and the Northern Ireland Department of Enterprise, Trade
and Investment. Policy is informed by the planning arm of the Republic of Ireland government, the Sustainable
05 Republic of Ireland & Northern Ireland
Organizations•UK Power Networks•Mayor of London•Transport for London•Greater London Authority•Institute for Sustainability,
Organizations
Slough Heat & Power •The University of Leeds •NTR
Supplier Highview Power Storage
The Low Carbon London Project is a four-year demonstration
project integrating a number of low carbon technologies
into the distribution network and taking a holistic view of the
distribution network operator’s business, while still focusing
on the customer experience. Technologies include photovoltaic
installations, residential smart meters, electric vehicles and
charging stations, heat pumps, and a centralized distribution
management system working with decentralized active network
management units. The integration and interaction between
these technologies and the distribution network will be closely
studied. As part of this demonstration project, the utility UK
Power Networks will also be piloting 3 separate retail tariff
systems: static (pre-determined rates based on static time
frames), dynamic (reflecting actual power availability), and
Slough Heat & Power has integrated into the National Grid the world’s first cryogenic
energy storage solution at its power station in Reading, Berkshire. Designed by Highview
Power Storage, the pilot demonstrator is currently operational and regularly exports
electricity to the National Grid at system peaks. The solution takes electricity from a nearby
biomass plant, stores it at a low pressure in above ground tanks, and uses it to liquefy air
by cooling it to -200°C. Energy is then released and supplied back to the National Grid by
evaporating the cryogenic fluid and using the resulting gas to drive turbine generators.
Waste or ambient heat can be used in the evaporation process, and the cold energy from
the exhaust can be stored and reused to liquefy more air. The full system returns about 50-
70% of the energy put in, depending on its use of waste heat. This is similar in efficiency to
compressed air storage, however, cryogenic energy storage is modular, scalable, portable,
and highly configurable, using commercially
available components in an innovative manner
that is not subject to geological constraints.
This is the first cryogenic storage unit
in the world connected to a grid and in
compliance with regulations.
lOw CarbOn lOndOn
CryOGeniC enerGy StOraGe PilOt
<< LOW CARBON LONDON5000 smart meters •100 electric vehicles •1500 electric vehicle charging posts •10 active network management units •60 distributed generators •24 MWs demand£30M
Cryogenic Energy Storage Pilot350kW/2.5MWh cryogenic energy storage£ 7.6M
Scale 5000 smart meters, 100 electric vehicles, 1500 electric vehicle charging posts, 10 active network management units, 60 distributed generators, 24 MWs demand
Type Multiple Technologies
Cost £30 million
Scale 350kW/2.5MWh cryogenic energy storage
Type Energy Storage
Cost £7.6 million
dynamic wind twinned (reflecting near real-time dynamic load
patterns). The design stage of the project is coming to a close,
and there are some early technology deployments already in
place. The team has concluded that a heat/gas perspective
must be taken into consideration when trying to achieve low
carbon goals. The distribution network operator was also able
to establish trust with industrial customers and commercial
generators, providing UK Power Networks with active network
management ability over the distributed generation output. The
project team intends to have all trials fully deployed by June
2012. For the period up to June 30, 2014, the project is expected
to yield total benefits of almost £2 million through avoided and
deferred network reinforcement.
>>
d. Notable Projects
•Imperial College London•National Grid•Imperial College London
•EDF Energy
Suppliers Logica •Siemens •Smarter Grid Solutions •EnerNoc •Flexitricity
28 < < The Global Smart Grid Federation 2012 REPORT Republic of Ireland & Northern Ireland > > 29
Energy Authority of Ireland. The Republic of Ireland regulator, the
Commission for Energy Regulation (CER), and the Northern Ireland
regulator, Northern Ireland Authority for Utility Regulation (NIAUR),
are involved in a joint initiative called “The All-Island Project” to
better harmonise their respective energy sectors. There is a single
wholesale electricity market for the entire Island in which participation
is mandatory. All electricity generated, imported, or consumed on
the Island must be purchased or sold in the Single Electricity Market.
Previously, Northern Ireland’s electricity market operated as part
of the UK electricity market. The Republic of Ireland government-
owned EirGrid plc operates the Single Electricity Market through its
subsidiary SONI Ltd and is the system operator.
Both electric grids are interconnected to each other, but have very
little interconnection to grids off the island. EirGrid plc acquired the
System Operator of Northern Ireland in 2009, which should better
enable harmonisation efforts. EirGrid owns and operates transmission
assets in the Republic of Ireland, and the Republic of Ireland
government-owned Electricity Supply Board (ESB) owns and operates
the transmission assets in Northern Ireland (through its subsidiary
Northern Ireland Electricity). ESB directly and indirectly (through
Northern Ireland Electricity) owns and operates distribution assets
in both the Republic of Ireland and Northern Ireland. The Electricity
Regulation Act 1999 purportedly liberalized the electricity sector in the
Republic of Ireland. There are multiple independent power generators
and retailers across both jurisdictions. Transmission and distribution
services are provided by state-controlled companies for regulated
charges. Retailers (including the ESB) are free to set their own tariffs.
As members of the EU, the Republic of Ireland and Northern Ireland
were required to transpose the 2009 Third Legislative Package,
which mandates greater deregulation of internal energy markets, into
national law by 2011. Both governments are still in the process of
transposition and are considering selling state-owned assets in the
electricity sector to comply with requirements.
c. Smart Meter / Smart Grid Infrastructure
The Republic of Ireland government has adopted smart metering
and smart grid as key components of its energy policies. The CER
is presently in the planning stages of a national smart meter rollout
program. The smart grid is also an important component of the
Republic of Ireland grid development strategy as set out in Grid
25: A Strategy for the Development of Ireland’s Electricity Grid for a
Sustainable and Competitive Future. There are several smart grid
activities taking place in the Republic of Ireland involving dynamic
line rating, electric vehicle infrastructure, and renewable connection
and control. The Sustainable Energy Authority of Ireland leads a
Smart Grid Roadmap steering group which intends to publish a smart
grid roadmap for the Republic of Ireland by the end of 2012. The
CER, EirGrid, and SmartGrid Ireland are part of this steering group.
SmartGridIreland is an industry association based in, or operating out
of, Northern Ireland and the Republic of Ireland, which is
presently in consultation with Northern Ireland Electricity
and ESB to develop a “smart zone” pilot.
The following two projects are the leading projects in
Ireland and will establish the basis for a smart grid
infrastructure. The CER smart metering trial project is now
complete, and the CER has concluded that smart meters
could yield net benefits of up to 282 million over 15 to 20
years. eCar Ireland is a cross-jurisdictional project, which
presents unique challenges.
d. Notable Projects
CER SMART METER TRIAL Approximately 9000 meters
ECAR IRELAND Republic 1500 public charging points •30 to 50 DC fast chargers •2000 home charging points €20M Northern 121 public chargers •5 DC fast chargers •634 home charging points • 127 workplace charging points £2M
eCar Ireland is an all-island project that pilots a basic EV charging
infrastructure in which drivers pay their nominated electricity supplier
(not the charging station) for the electricity the EV consumes and
pay a fee to the charging station. This cross-jurisdictional project
involves multiple electricity distributors, two currencies, and creates
a competitive retail market that is accessible in either country. The
project is the first phase of an ambitious national mass roll-out. In
the Republic of Ireland, this stage will see 500 public (or semi-public)
22kW chargers (32A, 400V Mode 3) installed in Dublin and at least
one in every town with a population of 1500 people of more. Fast
Chargers (50kW) will be installed every 60km on the inter-urban
routes, mostly at motorway service stations, with similar efforts being
made in Northern Ireland. On the Island of Ireland wind makes up
14% of electricity generated (rising to 37% by 2020). EV batteries
present an alternative to constraining wind generation. Dynamic
eCar ireland
Organizations •Electricity Supply Board•North of Ireland Executive•Northern Ireland Electricity•Power NI•several local municipalities
In May 2011, the CER completed a smart meter trial involving
approximately 9000 homes and businesses. The project assessed
the performance of available smart metering systems and
communication technologies and identified risks, issues, and
information relevant to a cost-benefit analysis for a national smart
metering rollout. The rollout saw single-phase and three-phase
meters communicate over PLC, GPRS and 2.4GHz wireless mesh in
various rural and urban locations.
Smart-metering-enabled energy efficiency measures were tested for
their impact on customer behaviour. Time-of-use tariffs and demand
side information management tools such as in-home displays,
detailed billing, and an online customer portal were introduced as
part of the trial. The project team found that time spent ensuring a
Scale
republic of ireland 1500 public charging points, 30 to 50 DC fast chargers, 2000 home charging points
northern ireland 121 public chargers, 5 DC fast chargers, 634 home charging points, 127 workplace charging points
Type Customer Engagement, Demand Response, Electric Vehicles
Cost 20 Million in the Republic of Ireland, £2 Million in Northern Ireland
smart charging could facilitate electric vehicles without significant
investment in generation, transmission, or distribution infrastructure
by effectively leveraging constrained wind energy. The project team
has developed smart charging algorithms using weather, customer
travel plans, wind generation, and real time electricity prices. These
will be used through a “cloud” infrastructure to dynamically control
EV charging. In the Republic of Ireland installations have started and
are expected to be completed by mid-2012, with Northern Ireland
following up. The Irish system is an example of how a national EV
charging infrastructure can be kick-started. It shows that such an
infrastructure can not only serve the electric distribution system but
can also support other business models. It is also an example for
other jurisdictions of a national infrastructure that facilitates smart
charging and roaming across international boundaries.
“plug-and-play” meter installation process was extremely beneficial,
but still saw technical issues in 3% of installations. The trial was
completed in May 2011 and the CER published a report highlighting
key learning that will be used to inform future decisions regarding
electricity smart metering for residential consumers and SMEs in
Ireland. The CER reported an overall reduction of 2.5% in residential
electricity demand (8.8% reduction during peak times) and an 82%
change in consumption patterns. The in-home display was especially
effective in reducing peak-time consumption, with 91% of residential
customers saying it was important. Based on findings from the trial,
the CER concluded that smart meters could yield net benefits of up
to 174 million over 15 to 20 years taking into account customer bill
reductions, efficiency, and environmental benefits.
Cer Smart meter trial
Organizations•Commission for Energy
Regulation•ESB Networks•ESB Electric Ireland•Bord Gais Energy•The Sustainable Energy
Authority of Ireland
Scale Approximately 9000 metersType Customer Engagement, Demand Response,
and Advanced Metering Infrastructure Cost Not Available
Suppliers•Elster•EICT•Vodafone•SagemCom•Trilliant
•Iskrameco•Aclara•Elster•Coronis
Suppliers•Renault-Nissan•Mitsubishi•PSA Peugeot-
Citroen•Micro-Vett
•Smiths Electric Vehicles•Allied Vehicles•Intel•SAP
•IBM•M2C•Ducati•Elektromotive•EBG•Siemens
•Chargemaster•Podpoint•SGTE•AeroVironment•ABB/Epyon•Circontrol
28 < < The Global Smart Grid Federation 2012 REPORT Republic of Ireland & Northern Ireland > > 29
Energy Authority of Ireland. The Republic of Ireland regulator, the
Commission for Energy Regulation (CER), and the Northern Ireland
regulator, Northern Ireland Authority for Utility Regulation (NIAUR),
are involved in a joint initiative called “The All-Island Project” to
better harmonise their respective energy sectors. There is a single
wholesale electricity market for the entire Island in which participation
is mandatory. All electricity generated, imported, or consumed on
the Island must be purchased or sold in the Single Electricity Market.
Previously, Northern Ireland’s electricity market operated as part
of the UK electricity market. The Republic of Ireland government-
owned EirGrid plc operates the Single Electricity Market through its
subsidiary SONI Ltd and is the system operator.
Both electric grids are interconnected to each other, but have very
little interconnection to grids off the island. EirGrid plc acquired the
System Operator of Northern Ireland in 2009, which should better
enable harmonisation efforts. EirGrid owns and operates transmission
assets in the Republic of Ireland, and the Republic of Ireland
government-owned Electricity Supply Board (ESB) owns and operates
the transmission assets in Northern Ireland (through its subsidiary
Northern Ireland Electricity). ESB directly and indirectly (through
Northern Ireland Electricity) owns and operates distribution assets
in both the Republic of Ireland and Northern Ireland. The Electricity
Regulation Act 1999 purportedly liberalized the electricity sector in the
Republic of Ireland. There are multiple independent power generators
and retailers across both jurisdictions. Transmission and distribution
services are provided by state-controlled companies for regulated
charges. Retailers (including the ESB) are free to set their own tariffs.
As members of the EU, the Republic of Ireland and Northern Ireland
were required to transpose the 2009 Third Legislative Package,
which mandates greater deregulation of internal energy markets, into
national law by 2011. Both governments are still in the process of
transposition and are considering selling state-owned assets in the
electricity sector to comply with requirements.
c. Smart Meter / Smart Grid Infrastructure
The Republic of Ireland government has adopted smart metering
and smart grid as key components of its energy policies. The CER
is presently in the planning stages of a national smart meter rollout
program. The smart grid is also an important component of the
Republic of Ireland grid development strategy as set out in Grid
25: A Strategy for the Development of Ireland’s Electricity Grid for a
Sustainable and Competitive Future. There are several smart grid
activities taking place in the Republic of Ireland involving dynamic
line rating, electric vehicle infrastructure, and renewable connection
and control. The Sustainable Energy Authority of Ireland leads a
Smart Grid Roadmap steering group which intends to publish a smart
grid roadmap for the Republic of Ireland by the end of 2012. The
CER, EirGrid, and SmartGrid Ireland are part of this steering group.
SmartGridIreland is an industry association based in, or operating out
of, Northern Ireland and the Republic of Ireland, which is
presently in consultation with Northern Ireland Electricity
and ESB to develop a “smart zone” pilot.
The following two projects are the leading projects in
Ireland and will establish the basis for a smart grid
infrastructure. The CER smart metering trial project is now
complete, and the CER has concluded that smart meters
could yield net benefits of up to 282 million over 15 to 20
years. eCar Ireland is a cross-jurisdictional project, which
presents unique challenges.
d. Notable Projects
CER SMART METER TRIAL Approximately 9000 meters
ECAR IRELAND Republic 1500 public charging points •30 to 50 DC fast chargers •2000 home charging points €20M Northern 121 public chargers •5 DC fast chargers •634 home charging points • 127 workplace charging points £2M
eCar Ireland is an all-island project that pilots a basic EV charging
infrastructure in which drivers pay their nominated electricity supplier
(not the charging station) for the electricity the EV consumes and
pay a fee to the charging station. This cross-jurisdictional project
involves multiple electricity distributors, two currencies, and creates
a competitive retail market that is accessible in either country. The
project is the first phase of an ambitious national mass roll-out. In
the Republic of Ireland, this stage will see 500 public (or semi-public)
22kW chargers (32A, 400V Mode 3) installed in Dublin and at least
one in every town with a population of 1500 people of more. Fast
Chargers (50kW) will be installed every 60km on the inter-urban
routes, mostly at motorway service stations, with similar efforts being
made in Northern Ireland. On the Island of Ireland wind makes up
14% of electricity generated (rising to 37% by 2020). EV batteries
present an alternative to constraining wind generation. Dynamic
eCar ireland
Organizations •Electricity Supply Board•North of Ireland Executive•Northern Ireland Electricity•Power NI•several local municipalities
In May 2011, the CER completed a smart meter trial involving
approximately 9000 homes and businesses. The project assessed
the performance of available smart metering systems and
communication technologies and identified risks, issues, and
information relevant to a cost-benefit analysis for a national smart
metering rollout. The rollout saw single-phase and three-phase
meters communicate over PLC, GPRS and 2.4GHz wireless mesh in
various rural and urban locations.
Smart-metering-enabled energy efficiency measures were tested for
their impact on customer behaviour. Time-of-use tariffs and demand
side information management tools such as in-home displays,
detailed billing, and an online customer portal were introduced as
part of the trial. The project team found that time spent ensuring a
Scale
republic of ireland 1500 public charging points, 30 to 50 DC fast chargers, 2000 home charging points
northern ireland 121 public chargers, 5 DC fast chargers, 634 home charging points, 127 workplace charging points
Type Customer Engagement, Demand Response, Electric Vehicles
Cost 20 Million in the Republic of Ireland, £2 Million in Northern Ireland
smart charging could facilitate electric vehicles without significant
investment in generation, transmission, or distribution infrastructure
by effectively leveraging constrained wind energy. The project team
has developed smart charging algorithms using weather, customer
travel plans, wind generation, and real time electricity prices. These
will be used through a “cloud” infrastructure to dynamically control
EV charging. In the Republic of Ireland installations have started and
are expected to be completed by mid-2012, with Northern Ireland
following up. The Irish system is an example of how a national EV
charging infrastructure can be kick-started. It shows that such an
infrastructure can not only serve the electric distribution system but
can also support other business models. It is also an example for
other jurisdictions of a national infrastructure that facilitates smart
charging and roaming across international boundaries.
“plug-and-play” meter installation process was extremely beneficial,
but still saw technical issues in 3% of installations. The trial was
completed in May 2011 and the CER published a report highlighting
key learning that will be used to inform future decisions regarding
electricity smart metering for residential consumers and SMEs in
Ireland. The CER reported an overall reduction of 2.5% in residential
electricity demand (8.8% reduction during peak times) and an 82%
change in consumption patterns. The in-home display was especially
effective in reducing peak-time consumption, with 91% of residential
customers saying it was important. Based on findings from the trial,
the CER concluded that smart meters could yield net benefits of up
to 174 million over 15 to 20 years taking into account customer bill
reductions, efficiency, and environmental benefits.
Cer Smart meter trial
Organizations•Commission for Energy
Regulation•ESB Networks•ESB Electric Ireland•Bord Gais Energy•The Sustainable Energy
Authority of Ireland
Scale Approximately 9000 metersType Customer Engagement, Demand Response,
and Advanced Metering Infrastructure Cost Not Available
Suppliers•Elster•EICT•Vodafone•SagemCom•Trilliant
•Iskrameco•Aclara•Elster•Coronis
Suppliers•Renault-Nissan•Mitsubishi•PSA Peugeot-
Citroen•Micro-Vett
•Smiths Electric Vehicles•Allied Vehicles•Intel•SAP
•IBM•M2C•Ducati•Elektromotive•EBG•Siemens
•Chargemaster•Podpoint•SGTE•AeroVironment•ABB/Epyon•Circontrol
JAPAN > > 31
a. Japanese Energy Policy
In June 2010, the Japanese government announced a new Strategic Energy Plan focused on principles of energy
security, conservation, efficiency, and economic growth based on energy and structural reform of the energy industry.
It aimed to make Japan an “environment and energy power through green innovation” under Japan’s New Growth
Strategy. The Strategic Energy Plan articulated strategies to achieve low carbon growth and ambitious targets for 2030,
such as nearly doubling Japan’s energy independence ratio and halving residential CO2 emissions. (Under the Kyoto
Protocol, Japan committed to reduce its CO2 emissions by 6% from 1990 levels.) The plan also targeted 50% nuclear
power as part of its energy supply mix. The March 11, 2011 earthquake and disaster at the Fukushima nuclear power
plant precipitated a period of soul-searching by Japan on matters national security and energy policy.
Since the March 2011 nuclear disaster, Japanese policy-makers have been struggling to strike a balance between
energy independence and national security. The government has not yet established any new policies, but its policy-
makers did agree that public safety, restoration of public trust in the energy system, and consumer empowerment
and protection should be the primary determinants of future energy policy. Japanese policymakers are seriously
considering implementing demand-side controls, smart meter infrastructure, flexible pricing structures, and
diversified electricity sources and retail options for consumers. Some argue that this will lead to renewed efforts to
deregulate the electricity industry and introduce greater competition to the benefit of consumers.
Japan’s commitment to renewable energy investment remains strong. Japan had set itself a target for 10% renewable
energy by 2020. Some speculate that this target percentage will double once the government completes its energy
policy review and that nuclear power will be phased out completely over time. Japan’s feed-in-tariff program for newly
installed renewable energy sources will come into effect in July 2012.
06 japan
b. Electricity Sector
In Japan, the Ministry of Economy, Trade and Industry (METI) is
responsible for establishing energy policy. There is no independent
regulator in Japan. The government’s Agency for Natural Resources
and Energy serves this function. A special parliamentary committee
is responsible for implementing the FIT system. The Japan Electric
Power Exchange (JEPX) is the sector’s wholesale power exchange
market. JEPX is privately owned and operated, and participation in
the JEPX is voluntary. The Electric Power System Council of Japan
is an independent, non-profit entity that establishes rules for the
industry regarding system development, access and operation of
interconnection facilities, and market oversight. It also acts as its
dispute settlement forum. The Council’s membership is made up
of Japan’s major electrical utilities, independent power producers,
and academics.
The Japanese national electric grid is unique in that it is actually
composed of two separate grids that operate at different frequencies
and are connected by only three converter stations, which, together,
can push only 1.2 GW of power east or west. The eastern grid
operates at 50 hertz with most of its legacy equipment originating
from Germany. The western grid operates at 60 hertz with equipment
sourced from the United States. The eastern grid is divided into four
service areas, and the western grid is divided into six service areas.
Each service area is basically self-sufficient but is interconnected with
adjoining service areas. The Japanese grid is considered very reliable.
Each service area on the Japanese grid is owned and operated by a
single electrical power company, which is the monopoly utility that
handles everything from generation, transmission, and distribution
to retailing. Each power company is the monopoly provider in its
allocated service area and is politically powerful. Interestingly, the
Japanese electricity supply industry has been privately owned since
1951. In the late 1990s, the Japanese government implemented
reforms which liberalized the generation sector somewhat and
permitted independent power generators to sell directly to medium
and large consumers. Still, the ten power companies account for
approximately 85% of generating capacity within specific geographic
regions. Retail tariffs are regulated based on cost of production plus a
fair rate of return.
Renewed calls to deregulate the electricity sector followed the 2011
Fukushima nuclear disaster. In response to the recent push for
renewable energy and more deregulation in the power market, it
has been argued that an unstable electricity supply and more major
blackouts would result.
c. Smart Meter / Smart Grid Infrastructure
As consumer empowerment in the power system gained momentum
as a political cause after the Fukushima nuclear disaster, the
Japanese government adopted smart metering as a tool to improve
demand side management. A publicly traded company, Tokyo Electric
Power Co. (TEPCO) is the largest of the ten power companies. It
also owns the Fukushima nuclear plants and all of the liabilities
associated with the 2011 disaster. In early 2012, at the government’s
instigation, TEPCO announced its intention to commence a smart
meter rollout in its service territory in the fall of 2013. This will be the
first massive deployment of smart meters in Japan. News reports
indicate the Japanese government is in the process of developing
smart meter requirements and standards that will apply nationally.
METI promotes construction of the smart grid and its deployment
overseas as initiatives supporting Japan’s efforts to become a global
energy power. Since 2008, the Japanese government has promoted
an “Eco-Model Cities” program – next generation energy and social
systems using low carbon technology – as key to Japan’s energy
saving strategy. The program is piloting various systems in a handful
of cities in Japan, namely Kansai Science City (electric vehicles and
photovoltaic installations in homes), Kitakyushu City (real-time
energy management of homes and commercial buildings), Yokohama
City (real-time energy management systems for homes and buildings,
which integrate photovoltaic installations and electric vehicles), and
Toyota City (demand response solutions and electric vehicles).
The Japan Smart Community Alliance is an organization which
represents a cross-section of views from industry, the public
sector, and academia. It is an important forum for discussion and
cooperation on matters concerning the smart grid, including the
development of global standards for smart grid technologies. The
projects profiled below represent a sample of leading-edge activities
undertaken by the membership. They are indicative of the level of
Japanese activity and interest in the smart grid.
d. Notable Projects
ad hOC COmmuniCatiOn teChnOlOGyOrganization Kit Carson Electric Cooperative
Supplier Fujitsu
Scale 2100 Smart MetersType Advanced Metering InfrastructureCost Not Available
Fujitsu’s wireless technology solution enables Kit Carson
Electric to build a network of smart meters for approximately
30 percent less of the cost than other smart meters currently
on the market. Kit Carson will be able to provide metering
data at an interval of 15 minutes, and the system can provide
almost real time meter readings in a more granular manner,
so that electricity users can realize their energy consumption
patterns and adjust their behaviour to conserve energy.
This project provided the foundation for Fujitsu’s smart
meter business.
30 < <
JAPAN > > 31
a. Japanese Energy Policy
In June 2010, the Japanese government announced a new Strategic Energy Plan focused on principles of energy
security, conservation, efficiency, and economic growth based on energy and structural reform of the energy industry.
It aimed to make Japan an “environment and energy power through green innovation” under Japan’s New Growth
Strategy. The Strategic Energy Plan articulated strategies to achieve low carbon growth and ambitious targets for 2030,
such as nearly doubling Japan’s energy independence ratio and halving residential CO2 emissions. (Under the Kyoto
Protocol, Japan committed to reduce its CO2 emissions by 6% from 1990 levels.) The plan also targeted 50% nuclear
power as part of its energy supply mix. The March 11, 2011 earthquake and disaster at the Fukushima nuclear power
plant precipitated a period of soul-searching by Japan on matters national security and energy policy.
Since the March 2011 nuclear disaster, Japanese policy-makers have been struggling to strike a balance between
energy independence and national security. The government has not yet established any new policies, but its policy-
makers did agree that public safety, restoration of public trust in the energy system, and consumer empowerment
and protection should be the primary determinants of future energy policy. Japanese policymakers are seriously
considering implementing demand-side controls, smart meter infrastructure, flexible pricing structures, and
diversified electricity sources and retail options for consumers. Some argue that this will lead to renewed efforts to
deregulate the electricity industry and introduce greater competition to the benefit of consumers.
Japan’s commitment to renewable energy investment remains strong. Japan had set itself a target for 10% renewable
energy by 2020. Some speculate that this target percentage will double once the government completes its energy
policy review and that nuclear power will be phased out completely over time. Japan’s feed-in-tariff program for newly
installed renewable energy sources will come into effect in July 2012.
06 japan
b. Electricity Sector
In Japan, the Ministry of Economy, Trade and Industry (METI) is
responsible for establishing energy policy. There is no independent
regulator in Japan. The government’s Agency for Natural Resources
and Energy serves this function. A special parliamentary committee
is responsible for implementing the FIT system. The Japan Electric
Power Exchange (JEPX) is the sector’s wholesale power exchange
market. JEPX is privately owned and operated, and participation in
the JEPX is voluntary. The Electric Power System Council of Japan
is an independent, non-profit entity that establishes rules for the
industry regarding system development, access and operation of
interconnection facilities, and market oversight. It also acts as its
dispute settlement forum. The Council’s membership is made up
of Japan’s major electrical utilities, independent power producers,
and academics.
The Japanese national electric grid is unique in that it is actually
composed of two separate grids that operate at different frequencies
and are connected by only three converter stations, which, together,
can push only 1.2 GW of power east or west. The eastern grid
operates at 50 hertz with most of its legacy equipment originating
from Germany. The western grid operates at 60 hertz with equipment
sourced from the United States. The eastern grid is divided into four
service areas, and the western grid is divided into six service areas.
Each service area is basically self-sufficient but is interconnected with
adjoining service areas. The Japanese grid is considered very reliable.
Each service area on the Japanese grid is owned and operated by a
single electrical power company, which is the monopoly utility that
handles everything from generation, transmission, and distribution
to retailing. Each power company is the monopoly provider in its
allocated service area and is politically powerful. Interestingly, the
Japanese electricity supply industry has been privately owned since
1951. In the late 1990s, the Japanese government implemented
reforms which liberalized the generation sector somewhat and
permitted independent power generators to sell directly to medium
and large consumers. Still, the ten power companies account for
approximately 85% of generating capacity within specific geographic
regions. Retail tariffs are regulated based on cost of production plus a
fair rate of return.
Renewed calls to deregulate the electricity sector followed the 2011
Fukushima nuclear disaster. In response to the recent push for
renewable energy and more deregulation in the power market, it
has been argued that an unstable electricity supply and more major
blackouts would result.
c. Smart Meter / Smart Grid Infrastructure
As consumer empowerment in the power system gained momentum
as a political cause after the Fukushima nuclear disaster, the
Japanese government adopted smart metering as a tool to improve
demand side management. A publicly traded company, Tokyo Electric
Power Co. (TEPCO) is the largest of the ten power companies. It
also owns the Fukushima nuclear plants and all of the liabilities
associated with the 2011 disaster. In early 2012, at the government’s
instigation, TEPCO announced its intention to commence a smart
meter rollout in its service territory in the fall of 2013. This will be the
first massive deployment of smart meters in Japan. News reports
indicate the Japanese government is in the process of developing
smart meter requirements and standards that will apply nationally.
METI promotes construction of the smart grid and its deployment
overseas as initiatives supporting Japan’s efforts to become a global
energy power. Since 2008, the Japanese government has promoted
an “Eco-Model Cities” program – next generation energy and social
systems using low carbon technology – as key to Japan’s energy
saving strategy. The program is piloting various systems in a handful
of cities in Japan, namely Kansai Science City (electric vehicles and
photovoltaic installations in homes), Kitakyushu City (real-time
energy management of homes and commercial buildings), Yokohama
City (real-time energy management systems for homes and buildings,
which integrate photovoltaic installations and electric vehicles), and
Toyota City (demand response solutions and electric vehicles).
The Japan Smart Community Alliance is an organization which
represents a cross-section of views from industry, the public
sector, and academia. It is an important forum for discussion and
cooperation on matters concerning the smart grid, including the
development of global standards for smart grid technologies. The
projects profiled below represent a sample of leading-edge activities
undertaken by the membership. They are indicative of the level of
Japanese activity and interest in the smart grid.
d. Notable Projects
ad hOC COmmuniCatiOn teChnOlOGyOrganization Kit Carson Electric Cooperative
Supplier Fujitsu
Scale 2100 Smart MetersType Advanced Metering InfrastructureCost Not Available
Fujitsu’s wireless technology solution enables Kit Carson
Electric to build a network of smart meters for approximately
30 percent less of the cost than other smart meters currently
on the market. Kit Carson will be able to provide metering
data at an interval of 15 minutes, and the system can provide
almost real time meter readings in a more granular manner,
so that electricity users can realize their energy consumption
patterns and adjust their behaviour to conserve energy.
This project provided the foundation for Fujitsu’s smart
meter business.
30 < <
32 < < The Global Smart Grid Federation 2012 REPORT JAPAN > > 33
diStributiOn StabilizinG SOlutiOnOrganization NEDO (New Energy and Industrial Technology Development Organization)
Suppliers Hitachi •CRIEPI (Central Research Institute of Electric Power Industry)
Scale One HV/MV substation & 2 distribution feeders (testbed)
Type Distribution Management System
Cost Not Available
Distribution Stabilizing Solution gunma One HV/MV substation & 2 distribution feeders
Hachinohe Microgrid Demonstration Project Electrical Islanded Operations on 5.4km / 6.6kV
overhead private distribution ¥3.3 billion
Ad Hoc Communication Technology 2100 Smart Meters
Total Energy Solutions Test Bed Project One Building
Miyako-Island Mega-SolarDemonstration Research Facility 4MW of PV Power Generation & 4MW Energy
Storage System
“maSS intrOduCtiOn Of evS” and “enerGy manaGement SyStem uSinG evS” aS PartS Of yOkOhama Smart City PrOjeCt
enerGy manaGement SyStem uSinG evS Organization Yokohama City
Suppliers Nissan •Hitachi •ORIX •ORIX Auto
Scale Several detached houses, 1 apartment/condominium, 1 commercial building, 1 charging station, 5-10 EVs, EVs subject to the demand response test (Number of EVs is TBD)
Type Energy Management and Electric VehiclesCost Not Available
In addition to the cities participating in the government’s Eco-
Model Cities program, there are other smart grid projects of
note. In Yokohama City, which is participating in the Eco-Model
Cities program, a consortium of industry players (Nissan,
Toshiba, Panasonic, Meidensha Corporation and others) are
miyakO-iSland meGa-SOlar demOnStratiOn reSearCh faCility Organization The Okinawa Electric Power Company
Supplier Toshiba Corp
New Mexico, United States
Punggol Eco-Town, Singapore
total energy Solutions test bed ProjectOrganization Singapore Government
Supplier Panasonic Corporation
Scale One Building
Type Multiple Technologies
Cost Not Available
In a two-year project that began in August 2011, Panasonic will provide total
energy solutions tailored to a building to enable local energy generation for
consumption in the building’s common facilities. Rooftop photovoltaic systems
and lithium-ion batteries will be combined to create and store energy. Demand
Response will be implemented by combining smart meters with a Home Energy
Management System (HEMS). Each household will have an in-home display
(IHD) so that the user can view how much electricity, water, or gas is being
used. Demand response will be achieved through Smart Energy Gateway (SEG)
which connects the smart meter and home appliances, such as air-conditioners.
maSS intrOduCtiOn Of evS
Organization Yokohama City
Suppliers n/a
Scale 2000 Electric Vehicles (not limited to Nissan’s EV)
Type Electric Vehicles
Cost Not Available
in the development stage of smart city programs. One of Nissan
related programs will introduce 2000 EVs by the end of FY2014
into the city. The goal is to contribute to reducing CO2 in transport
sector, which accounts for 20% of overall CO2 emission.renewable
generation penetration.
Scale 4MW of PV Power Generation & 4MW Energy Storage System
Type Distributed Renewable Generation and Energy Storage
Cost Not Available
This was a pilot project conducted in Okinawa by The Okinawa
Electric Company and Toshiba to test the integration of large-scale
renewable energy sources into the power system and study the impact
of photovoltaic power generation facilities and rechargeable batteries
on power system stabilization. The pilot commenced operation in
October 2010 for a four-year testing period. Miyako-Island has an
existing total demand of 50MW. The goal is the smooth integration
of large scale PV generation by using storage batteries and control
systems to maintain network stability while preserving the beauty
and cleanliness of the Miyako-Island coastline. Studies on frequency
control are expected to provide valuable insight in situations of high
renewable generation penetration.
haChinOhe miCrOGrid demOnStratiOn PrOjeCtOrganizations
NEDO (New Energy and Industrial Technology
Development Organization)i •Hachinohe-city
Suppliers
Mitsubishi Electric Corporation • Mitsubishi Research Institute Inc.
Scale Electrical Islanded Operations on 5.4km / 6.6kV overhead private distribution grid
Type Microgrid
Cost ¥3.3 billion
This project in Aomori tested the performance of a
demand-supply control system in managing the impact
of renewable energy on a commercial power grid
with real end users (605kW demand) for an electrical
island. The project successfully conducted one-week of
islanded operations relying on 100% renewable energy.
Demand-supply control systems and a combination of
wind (20kW), PV (130kW), gas cogeneration (510kW),
and battery (100kW) were able to adequately supply six
end users. The project furnishes technical solutions to
islanded operations using renewables. Additional analyses
of electric power quality during islanding operation will
further the integration of dispersed energy resources.
This goal of this project, executed with CRIEPI under NEDO
funding, was to maintain voltage stability and power quality
in the face of distributed renewable energy integration. The
project equipment simulates photovoltaic generation and
electricity consumption in-house and on the distribution
network. Using two Distribution Static-Var Compensators
(D-STATCOMs), one Loop Balance Controller (LBC), and one
Step Voltage Regulator (SVR), all controlled by a Distribution
Voltage-Var Controller (D-VQC), the project verified the effective
voltage regulation of photovoltaic generation. The D-STATCOM
provides fast voltage control in situations with rapidly changing
generation due to weather conditions. In addition, the project
verified cooperative control for fast-control D-STATCOM and
slow-control SVR. This project was done in 2004 – 2007.
Mass introduction of EVs 2000 Electric VehiclesEnergy management system using EVs Several detached houses •1 apartment/condominium •1
commercial building •1 charging station •5-10 EVs •EVs subject to the demand response test (Number of EVs is TBD)
over
32 < < The Global Smart Grid Federation 2012 REPORT JAPAN > > 33
diStributiOn StabilizinG SOlutiOnOrganization NEDO (New Energy and Industrial Technology Development Organization)
Suppliers Hitachi •CRIEPI (Central Research Institute of Electric Power Industry)
Scale One HV/MV substation & 2 distribution feeders (testbed)
Type Distribution Management System
Cost Not Available
Distribution Stabilizing Solution gunma One HV/MV substation & 2 distribution feeders
Hachinohe Microgrid Demonstration Project Electrical Islanded Operations on 5.4km / 6.6kV
overhead private distribution ¥3.3 billion
Ad Hoc Communication Technology 2100 Smart Meters
Total Energy Solutions Test Bed Project One Building
Miyako-Island Mega-SolarDemonstration Research Facility 4MW of PV Power Generation & 4MW Energy
Storage System
“maSS intrOduCtiOn Of evS” and “enerGy manaGement SyStem uSinG evS” aS PartS Of yOkOhama Smart City PrOjeCt
enerGy manaGement SyStem uSinG evS Organization Yokohama City
Suppliers Nissan •Hitachi •ORIX •ORIX Auto
Scale Several detached houses, 1 apartment/condominium, 1 commercial building, 1 charging station, 5-10 EVs, EVs subject to the demand response test (Number of EVs is TBD)
Type Energy Management and Electric VehiclesCost Not Available
In addition to the cities participating in the government’s Eco-
Model Cities program, there are other smart grid projects of
note. In Yokohama City, which is participating in the Eco-Model
Cities program, a consortium of industry players (Nissan,
Toshiba, Panasonic, Meidensha Corporation and others) are
miyakO-iSland meGa-SOlar demOnStratiOn reSearCh faCility Organization The Okinawa Electric Power Company
Supplier Toshiba Corp
New Mexico, United States
Punggol Eco-Town, Singapore
total energy Solutions test bed ProjectOrganization Singapore Government
Supplier Panasonic Corporation
Scale One Building
Type Multiple Technologies
Cost Not Available
In a two-year project that began in August 2011, Panasonic will provide total
energy solutions tailored to a building to enable local energy generation for
consumption in the building’s common facilities. Rooftop photovoltaic systems
and lithium-ion batteries will be combined to create and store energy. Demand
Response will be implemented by combining smart meters with a Home Energy
Management System (HEMS). Each household will have an in-home display
(IHD) so that the user can view how much electricity, water, or gas is being
used. Demand response will be achieved through Smart Energy Gateway (SEG)
which connects the smart meter and home appliances, such as air-conditioners.
maSS intrOduCtiOn Of evS
Organization Yokohama City
Suppliers n/a
Scale 2000 Electric Vehicles (not limited to Nissan’s EV)
Type Electric Vehicles
Cost Not Available
in the development stage of smart city programs. One of Nissan
related programs will introduce 2000 EVs by the end of FY2014
into the city. The goal is to contribute to reducing CO2 in transport
sector, which accounts for 20% of overall CO2 emission.renewable
generation penetration.
Scale 4MW of PV Power Generation & 4MW Energy Storage System
Type Distributed Renewable Generation and Energy Storage
Cost Not Available
This was a pilot project conducted in Okinawa by The Okinawa
Electric Company and Toshiba to test the integration of large-scale
renewable energy sources into the power system and study the impact
of photovoltaic power generation facilities and rechargeable batteries
on power system stabilization. The pilot commenced operation in
October 2010 for a four-year testing period. Miyako-Island has an
existing total demand of 50MW. The goal is the smooth integration
of large scale PV generation by using storage batteries and control
systems to maintain network stability while preserving the beauty
and cleanliness of the Miyako-Island coastline. Studies on frequency
control are expected to provide valuable insight in situations of high
renewable generation penetration.
haChinOhe miCrOGrid demOnStratiOn PrOjeCtOrganizations
NEDO (New Energy and Industrial Technology
Development Organization)i •Hachinohe-city
Suppliers
Mitsubishi Electric Corporation • Mitsubishi Research Institute Inc.
Scale Electrical Islanded Operations on 5.4km / 6.6kV overhead private distribution grid
Type Microgrid
Cost ¥3.3 billion
This project in Aomori tested the performance of a
demand-supply control system in managing the impact
of renewable energy on a commercial power grid
with real end users (605kW demand) for an electrical
island. The project successfully conducted one-week of
islanded operations relying on 100% renewable energy.
Demand-supply control systems and a combination of
wind (20kW), PV (130kW), gas cogeneration (510kW),
and battery (100kW) were able to adequately supply six
end users. The project furnishes technical solutions to
islanded operations using renewables. Additional analyses
of electric power quality during islanding operation will
further the integration of dispersed energy resources.
This goal of this project, executed with CRIEPI under NEDO
funding, was to maintain voltage stability and power quality
in the face of distributed renewable energy integration. The
project equipment simulates photovoltaic generation and
electricity consumption in-house and on the distribution
network. Using two Distribution Static-Var Compensators
(D-STATCOMs), one Loop Balance Controller (LBC), and one
Step Voltage Regulator (SVR), all controlled by a Distribution
Voltage-Var Controller (D-VQC), the project verified the effective
voltage regulation of photovoltaic generation. The D-STATCOM
provides fast voltage control in situations with rapidly changing
generation due to weather conditions. In addition, the project
verified cooperative control for fast-control D-STATCOM and
slow-control SVR. This project was done in 2004 – 2007.
Mass introduction of EVs 2000 Electric VehiclesEnergy management system using EVs Several detached houses •1 apartment/condominium •1
commercial building •1 charging station •5-10 EVs •EVs subject to the demand response test (Number of EVs is TBD)
over
S. KOREA > > 35
a. South Korean Energy Policy
“Sustainable development” is the phrase used by the South Korean government to sum up its
energy policy, of which national security and economic growth are the principal drivers. Korea
imports almost 97% of total energy consumed with a heavy reliance on oil from the Middle
East. South Korea’s energy consumption has more than doubled in the past 12 years. In 2010,
Korea was the 11th biggest energy consumer in the world and the 5th largest importer of
crude oil. As a matter of energy security, the Korean government is attempting to improve the
country’s energy self-sufficiency by developing and acquiring energy resources in developing
countries, often in exchange for development assistance. It also intends to better diversify the
nation’s energy supply mix, reducing its reliance on fossil fuels in favour of alternative energy
sources, principally nuclear power.
For the South Koreans, environmental security also appears to be a matter of national
security. The government is acutely sensitive to the adverse impact of environmental change
on the country. Over the past several years, South Korea has experienced repeated flooding
and droughts caused by extreme weather events (which are expected to worsen), and these
occurrences have caused significant human and economic loss. While it is not an Annex-I
member to the Kyoto Protocol, South Korea committed to a voluntary emissions reduction
target of 30% by 2020, the highest reduction level that the Intergovernmental Panel on
Climate Change recommended for developing nations.
The South Korean government is clear in its ambition that South Korea become a world
leader in energy technology and the energy market. It has adopted green technology as a pillar
07 s. korea
of the country’s economic growth strategy. It has passed a series
of laws promoting low carbon growth and green energy initiatives,
including the Basic Law on Low Carbon Growth and Green Growth
(2010) which earmarks 2% of the country’s gross domestic product
to stimulate green business and projects and lowering greenhouse
gas emissions. Under the Renewable Portfolio Standard passed
in 2010 and effective as of 2012, two percent of total electricity
generation will come from renewable sources. Currently, South Korea
is an exporter of nuclear reactor technology, wind technology, and
photovoltaic solar technology.
b. South Korea’s Electricity Sector
The South Korean electricity sector is governed by (1) the Ministry
of the Knowledge Economy, which is responsible for developing and
implementing energy policy, (2) the Korea Electricity Commission
(KOREC), which is the regulator for the sector and exercises tight
controls over retail tariffs and quality and security matters, and (3)
the Korea Electric Power Exchange, which is the system operator
and wholesale market coordinator. The Environmental Preservation
Committee makes key environmental decisions which impact the
electricity sector as well.
Historically, the South Korean electricity sector is dominated by
a state-controlled, vertically-integrated monopoly over electricity
generation, transmission, distribution and retailing. In 2001, the
government began to implement market reforms, intending to divest
itself of its generation and electricity distribution businesses and
create a competitive retail market, but these efforts met resistance
and were ultimately abandoned. As a result of earlier reform efforts,
there are some independent power producers and district suppliers.
However, state-controlled Korea Electric Power Corporation
(KEPCO) still owns and operates most generators, and the country’s
transmission and distribution assets. The South Korean electricity
grid is a closed system, but the government has expressed its hope
to move towards a regionally interconnected supply system in North
East Asia.
Retail rates are still tightly controlled by the government through
KOREC. Currently, retail tariffs only cover approximately 87%
of generation costs. KOREC has restricted KEPCO from passing
increases in the cost of coal, natural gas and oil to consumers.
Presently, electricity tariffs are determined by the class of consumer
(industrial, agricultural, or residential), the geographic location
of the consumer (urban or rural), and time of use (day or night).
In South Korea, industrial users account for up to half of all
power consumption.
c. South Korea’s Smart Meter / Grid Infrastructure
Because innovating (and exporting) green technology is a pillar of
Korean economic strategy, the South Korean government is very
active in smart meter / smart grid activities, both domestically and
internationally. The government plans to install smart meters in
half of all Korean households by 2016 and to replace all remaining
analogue meters by 2020. It has implemented pilot deployments
of smart meters and is presently in the tendering stage for the
broader rollout. In 2011, the South Korean legislature approved
the Smart Grid Promotion Act (2010) which provides a framework
for sustainable smart grid projects and a plan for smart grid
development, deployment and commercialization. The Korean
government is actively collaborating with the American government
on energy development, smart grid standard development and on
cybersecurity and grid trustworthiness projects, skills training and
development, and smart building initiatives. Korea was designated
as a lead country in smart grid at the Major Economies Forum on
Energy and Climate held as part of the July 2009 G8 Summit.
There has been no notable public reaction to the government’s smart
metering or smart grid initiatives. Smart meters and the smart grid
do not have much profile with the general population, and electricity
tariffs are not a highly politicized subject matter.
What is striking about the Korean example is the level of coordination
and support between government and industry in achieving the
objective of economic growth based on green innovation. The Korea
Smart Grid Association plays a critical role as a mediator between
government and private-sector stakeholders on the smart grid. It
helps develop smart grid projects, conducts standardization work,
and engages in important research and development.
South Korea’s Jeju Smart Grid Demonstration Complex, highlighted
below, reflects the massive scale of government and industry
investment and high level of cooperation in the smart grid space.
34 < <
S. KOREA > > 35
a. South Korean Energy Policy
“Sustainable development” is the phrase used by the South Korean government to sum up its
energy policy, of which national security and economic growth are the principal drivers. Korea
imports almost 97% of total energy consumed with a heavy reliance on oil from the Middle
East. South Korea’s energy consumption has more than doubled in the past 12 years. In 2010,
Korea was the 11th biggest energy consumer in the world and the 5th largest importer of
crude oil. As a matter of energy security, the Korean government is attempting to improve the
country’s energy self-sufficiency by developing and acquiring energy resources in developing
countries, often in exchange for development assistance. It also intends to better diversify the
nation’s energy supply mix, reducing its reliance on fossil fuels in favour of alternative energy
sources, principally nuclear power.
For the South Koreans, environmental security also appears to be a matter of national
security. The government is acutely sensitive to the adverse impact of environmental change
on the country. Over the past several years, South Korea has experienced repeated flooding
and droughts caused by extreme weather events (which are expected to worsen), and these
occurrences have caused significant human and economic loss. While it is not an Annex-I
member to the Kyoto Protocol, South Korea committed to a voluntary emissions reduction
target of 30% by 2020, the highest reduction level that the Intergovernmental Panel on
Climate Change recommended for developing nations.
The South Korean government is clear in its ambition that South Korea become a world
leader in energy technology and the energy market. It has adopted green technology as a pillar
07 s. korea
of the country’s economic growth strategy. It has passed a series
of laws promoting low carbon growth and green energy initiatives,
including the Basic Law on Low Carbon Growth and Green Growth
(2010) which earmarks 2% of the country’s gross domestic product
to stimulate green business and projects and lowering greenhouse
gas emissions. Under the Renewable Portfolio Standard passed
in 2010 and effective as of 2012, two percent of total electricity
generation will come from renewable sources. Currently, South Korea
is an exporter of nuclear reactor technology, wind technology, and
photovoltaic solar technology.
b. South Korea’s Electricity Sector
The South Korean electricity sector is governed by (1) the Ministry
of the Knowledge Economy, which is responsible for developing and
implementing energy policy, (2) the Korea Electricity Commission
(KOREC), which is the regulator for the sector and exercises tight
controls over retail tariffs and quality and security matters, and (3)
the Korea Electric Power Exchange, which is the system operator
and wholesale market coordinator. The Environmental Preservation
Committee makes key environmental decisions which impact the
electricity sector as well.
Historically, the South Korean electricity sector is dominated by
a state-controlled, vertically-integrated monopoly over electricity
generation, transmission, distribution and retailing. In 2001, the
government began to implement market reforms, intending to divest
itself of its generation and electricity distribution businesses and
create a competitive retail market, but these efforts met resistance
and were ultimately abandoned. As a result of earlier reform efforts,
there are some independent power producers and district suppliers.
However, state-controlled Korea Electric Power Corporation
(KEPCO) still owns and operates most generators, and the country’s
transmission and distribution assets. The South Korean electricity
grid is a closed system, but the government has expressed its hope
to move towards a regionally interconnected supply system in North
East Asia.
Retail rates are still tightly controlled by the government through
KOREC. Currently, retail tariffs only cover approximately 87%
of generation costs. KOREC has restricted KEPCO from passing
increases in the cost of coal, natural gas and oil to consumers.
Presently, electricity tariffs are determined by the class of consumer
(industrial, agricultural, or residential), the geographic location
of the consumer (urban or rural), and time of use (day or night).
In South Korea, industrial users account for up to half of all
power consumption.
c. South Korea’s Smart Meter / Grid Infrastructure
Because innovating (and exporting) green technology is a pillar of
Korean economic strategy, the South Korean government is very
active in smart meter / smart grid activities, both domestically and
internationally. The government plans to install smart meters in
half of all Korean households by 2016 and to replace all remaining
analogue meters by 2020. It has implemented pilot deployments
of smart meters and is presently in the tendering stage for the
broader rollout. In 2011, the South Korean legislature approved
the Smart Grid Promotion Act (2010) which provides a framework
for sustainable smart grid projects and a plan for smart grid
development, deployment and commercialization. The Korean
government is actively collaborating with the American government
on energy development, smart grid standard development and on
cybersecurity and grid trustworthiness projects, skills training and
development, and smart building initiatives. Korea was designated
as a lead country in smart grid at the Major Economies Forum on
Energy and Climate held as part of the July 2009 G8 Summit.
There has been no notable public reaction to the government’s smart
metering or smart grid initiatives. Smart meters and the smart grid
do not have much profile with the general population, and electricity
tariffs are not a highly politicized subject matter.
What is striking about the Korean example is the level of coordination
and support between government and industry in achieving the
objective of economic growth based on green innovation. The Korea
Smart Grid Association plays a critical role as a mediator between
government and private-sector stakeholders on the smart grid. It
helps develop smart grid projects, conducts standardization work,
and engages in important research and development.
South Korea’s Jeju Smart Grid Demonstration Complex, highlighted
below, reflects the massive scale of government and industry
investment and high level of cooperation in the smart grid space.
34 < <
36 < < The Global Smart Grid Federation 2012 REPORT S. KOREA > > 37
Smart tranSPOrtatiOnOrganizations
SK Innovation •SK Telecom •Hyundai Heavy Industries •Renault Samsung Motors
Suppliers
•SK Innovation•SK Telecom•SK Networks
•Hyundai Heavy Industries•Renault Samsung Motors•CT&T
•DH Holdings ILJIN Electric•EN Tech•KODI-S
Scale 12 consortiums approximately 600 households, 72 EVs, 89 charging stations, 9 home (3 kWh) and building (150 kWh) storage units, and 1 wind power energy storage system.
Type Electric Vehicles
Cost $18 million invested by the SK consortium
In this project, which began in 2009, the project team is implementing an electric vehicle
infrastructure that is integrated into the power system and incorporates fast and smart
battery chargers, GPS-based charging spots, and emergency information and services.
The infrastructure relies on wireless communications. As part of the project, the team
will be developing battery energy storage systems (BESS) for buildings and wind power.
Data management for the EV infrastructure will be conducted from the Total Operating
Centre (network operating centre) in the Jeju Smart Grid System Demonstration Complex.
This project is scheduled to finish in 2013, with the hope of furthering the consortium’s
understanding of smart charging and vehicle-to-grid applications.
renewable enerGy SOurCe OPeratinG SyStem Organization POSCO ICT
Suppliers
•LG Chem•Woojin Industrial System•Daekyung Engineering•Korea Institute of Energy Research
•Research Institute of Industrial Science & Technology•Chungbuk University•Jeju University
Scale 2 wind generators (750kW), Energy Storage System 2MVA/500kWh, Lead-Acid Energy Storage System 275kW/137.5kWh
Type Distributed Renewable Generation and Network Monitoring & Telemetry
Costs Not Available
This is a demonstration of a microgrid system that incorporates
large-volume wind generation, intelligent output stabilization
for this generation, and high volume BESS (2MVA) and various
other battery technologies (Li-ion, lead-acid, EDLD, redox flow).
The project aims to pilot a microgrid system that can operate
independently as well as interconnect with other grids. The project
is presently in the testing and demonstration stage.
COnSumer-PartiCiPatinG Smart PlaCeOrganisation KEPCO
Suppliers•Samsung SDI•Hyosung•Omni-system
•AID•Rootech•ABB
•Secui.com•Millinet•Samsung Electronics
Scale 600 households
Type Consumer Engagement, Demand Response, Advanced
Metering Infrastructure, Energy Storage, Electric Vehicles, and
Distributed Renewable Generation
Cost ₩33B / USD$30M
The smart grid green place project outfits houses and buildings
with integrated energy management services to better manage
their energy use. As part of the project, real-time electricity rates
will be introduced, and renewable generation sources and energy
storage solutions will be installed at residences together with
in-home displays to monitor energy usage. It will be possible to
compare electricity use across households. Smart appliances and
EVs are also being introduced. The project team is in consultation
for the development of regulations which would manage the
electricity market created by the demonstration project. Electric car
chargers, power storage facilities, and photovoltaic systems have
been built. An integrated energy management system for buildings
is under development.
Jeju Smart Grid System Demonstration Complex
Smart Transportation 12 consortiums approximately 600 households •72 EVs •89 charging stations •9 home (3 kWh) and building (150 kWh) storage units •1 wind power energy storage systemUSD$18 million invested by the SK consortium
Renewable Energy Source Operating System 2 wind generators (750kW) •Energy Storage System 2MVA/500kWh •Lead-Acid Energy Storage System 275kW/137.5kWh
Consumer-participating smart place 600 households ₩33B / USD$30M
•Hyosung•Omni-system
•AID•Rootech
•ABB•Samsung SDI
jeju Smart Grid SyStem demOnStratiOn COmPlex
Organizations
•KEPCO•Samsung SDI
Suppliers•Secui.com•Hyosung
Scale Demonstration ProjectType Multiple TechnologiesCost Not Available
With funding from the government and the private sector, together with a host of other
companies, KEPCO is undertaking an ambitious smart grid demonstration project on Jeju
Island which incorporates distributed renewable generation (wind and solar), distributed
automation, a distribution management system, EV infrastructure, advanced metering
infrastructure, energy storage, and network monitoring and telemetry. The first phase of the
project is complete. In the first phase, the consortium constructed electric vehicle charging
stations and installed solar panel rooftops on residences as well as in-home energy storage
systems, in-home displays, smart appliances, and/or smart meters. Jeju Island presents a
unique opportunity to test smart grid technologies. Notably, the government and private
sector alone have financed this projected with the government contributing a little less
than a third of total project costs.
d. Notable Projects
•PCS•Omni System
• Millinet
•Samsung Electronics
36 < < The Global Smart Grid Federation 2012 REPORT S. KOREA > > 37
Smart tranSPOrtatiOnOrganizations
SK Innovation •SK Telecom •Hyundai Heavy Industries •Renault Samsung Motors
Suppliers
•SK Innovation•SK Telecom•SK Networks
•Hyundai Heavy Industries•Renault Samsung Motors•CT&T
•DH Holdings ILJIN Electric•EN Tech•KODI-S
Scale 12 consortiums approximately 600 households, 72 EVs, 89 charging stations, 9 home (3 kWh) and building (150 kWh) storage units, and 1 wind power energy storage system.
Type Electric Vehicles
Cost $18 million invested by the SK consortium
In this project, which began in 2009, the project team is implementing an electric vehicle
infrastructure that is integrated into the power system and incorporates fast and smart
battery chargers, GPS-based charging spots, and emergency information and services.
The infrastructure relies on wireless communications. As part of the project, the team
will be developing battery energy storage systems (BESS) for buildings and wind power.
Data management for the EV infrastructure will be conducted from the Total Operating
Centre (network operating centre) in the Jeju Smart Grid System Demonstration Complex.
This project is scheduled to finish in 2013, with the hope of furthering the consortium’s
understanding of smart charging and vehicle-to-grid applications.
renewable enerGy SOurCe OPeratinG SyStem Organization POSCO ICT
Suppliers
•LG Chem•Woojin Industrial System•Daekyung Engineering•Korea Institute of Energy Research
•Research Institute of Industrial Science & Technology•Chungbuk University•Jeju University
Scale 2 wind generators (750kW), Energy Storage System 2MVA/500kWh, Lead-Acid Energy Storage System 275kW/137.5kWh
Type Distributed Renewable Generation and Network Monitoring & Telemetry
Costs Not Available
This is a demonstration of a microgrid system that incorporates
large-volume wind generation, intelligent output stabilization
for this generation, and high volume BESS (2MVA) and various
other battery technologies (Li-ion, lead-acid, EDLD, redox flow).
The project aims to pilot a microgrid system that can operate
independently as well as interconnect with other grids. The project
is presently in the testing and demonstration stage.
COnSumer-PartiCiPatinG Smart PlaCeOrganisation KEPCO
Suppliers•Samsung SDI•Hyosung•Omni-system
•AID•Rootech•ABB
•Secui.com•Millinet•Samsung Electronics
Scale 600 households
Type Consumer Engagement, Demand Response, Advanced
Metering Infrastructure, Energy Storage, Electric Vehicles, and
Distributed Renewable Generation
Cost ₩33B / USD$30M
The smart grid green place project outfits houses and buildings
with integrated energy management services to better manage
their energy use. As part of the project, real-time electricity rates
will be introduced, and renewable generation sources and energy
storage solutions will be installed at residences together with
in-home displays to monitor energy usage. It will be possible to
compare electricity use across households. Smart appliances and
EVs are also being introduced. The project team is in consultation
for the development of regulations which would manage the
electricity market created by the demonstration project. Electric car
chargers, power storage facilities, and photovoltaic systems have
been built. An integrated energy management system for buildings
is under development.
Jeju Smart Grid System Demonstration Complex
Smart Transportation 12 consortiums approximately 600 households •72 EVs •89 charging stations •9 home (3 kWh) and building (150 kWh) storage units •1 wind power energy storage systemUSD$18 million invested by the SK consortium
Renewable Energy Source Operating System 2 wind generators (750kW) •Energy Storage System 2MVA/500kWh •Lead-Acid Energy Storage System 275kW/137.5kWh
Consumer-participating smart place 600 households ₩33B / USD$30M
•Hyosung•Omni-system
•AID•Rootech
•ABB•Samsung SDI
jeju Smart Grid SyStem demOnStratiOn COmPlex
Organizations
•KEPCO•Samsung SDI
Suppliers•Secui.com•Hyosung
Scale Demonstration ProjectType Multiple TechnologiesCost Not Available
With funding from the government and the private sector, together with a host of other
companies, KEPCO is undertaking an ambitious smart grid demonstration project on Jeju
Island which incorporates distributed renewable generation (wind and solar), distributed
automation, a distribution management system, EV infrastructure, advanced metering
infrastructure, energy storage, and network monitoring and telemetry. The first phase of the
project is complete. In the first phase, the consortium constructed electric vehicle charging
stations and installed solar panel rooftops on residences as well as in-home energy storage
systems, in-home displays, smart appliances, and/or smart meters. Jeju Island presents a
unique opportunity to test smart grid technologies. Notably, the government and private
sector alone have financed this projected with the government contributing a little less
than a third of total project costs.
d. Notable Projects
•PCS•Omni System
• Millinet
•Samsung Electronics
U.S.A > > 39
Hawaii because of the isolated nature of their grids. The North
American Electric Reliability Corporation (NERC) is authorized by the
Federal Power Act to ensure the reliability of the bulk power system
by establishing and enforcing reliability standards, monitoring the
system, providing forecasts, and offering education, training, and
certification programs (including those for transmission operators,
reliability coordinators, balancing authorities, and system operators).
Some NERC members have formed regional organizations with
similar missions (ISOs and RTOs).
Historically, the American electricity sector was dominated by
vertically integrated monopolies established by state statutes and
regulated through what is known as the “regulatory compact”.
In many states, sector restructuring has occurred. Presently, the
wholesale electricity market is competitive and there is open access
to transmission. Ten states have also opened up electricity retailing
to competition, while three additional states are currently considering
it. In most states, retail rates are regulated and set by the Public
Utility Commissions. Electric utilities are owned by the private
sector, rural electric cooperatives, or municipal governments. Power
marketers buy and sell electricity, but generally do not own or operate
generation, transmission, or distribution facilities.
c. Smart Metering / Smart Grid Infrastructure
In 2010, 663 U.S. electric utilities had 20,334,525 smart metering
infrastructure installations, approximately 90% of which were
residential customer installations. In 2011, the national average
penetration rate for smart meters was about 14%, with rates in
seven states exceeding 25%. Other than a major influx of investment
through the Federal Stimulus, much of the cost of these deployments
is recovered in the retail tariffs paid by consumers. Public reaction
to these deployments has been mixed; for utilities that articulated
the benefits of smart metering, the consumer reaction has been
positive, such as the deployments for Oklahoma Gas & Electric, San
Diego Gas & Electric, as well as CenterPoint Energy in Texas. In other
areas there has been major consumer pushback, fueled mostly by
health and privacy concerns and a negative response to the increased
electricity costs that have accompanied the smart meters. Class
action suits were launched against Pacific Gas & Electric in California
and against Oncor in Texas alleging health and privacy infringements,
as well as overbilling. The suit against Oncor was dismissed in
August 2010.
As a result of these developments, the political profile of consumer-
sensitive issues related to smart meters is higher in the U.S. In
response, there have been a series of initiatives from government
and industry to address these concerns. The Smart Grid Consumer
Collaborative was formed by private sector companies, utilities
and advocacy organizations to focus on smart grid messaging and
educational tools for consumers. In California, the government
enacted legislation protecting the privacy of consumer energy
consumption data, and the California Public Utilities Commission
ruled that customers must be allowed to opt-out of smart meter
installations (for a fee).
The smart grid is a topic with a lower popular profile than that of
smart meters. In 2003, the U.S. Department of Energy formed the
Office of Electric Transmission and Distribution (now called the
Office of Electricity Delivery and Energy Reliability) to lead a national
effort to modernize and expand the electricity grid. In January 2004,
the Office produced the National Electric Delivery Technologies
Roadmap, which articulated an ambitious vision of a smart grid
branded “Grid 2030”. Grid 2030 envisaged intercontinental power
transfers, real-time information flow from consumers, near-zero
economic losses from power outages and disturbances, and open
competitive markets in all segments of the electricity industry. This
roadmap was recently updated, but was not publicly available at the
time of this writing.
Since then, the federal government has made significant
commitments and funding available to stimulate smart grid
activity. Support for the smart grid was codified in the federal
Energy Independence and Security Act of 2007. The Department of
Energy manages an R&D and demonstration program for smart
grid technologies that matches funds for qualifying investments.
State utility commissions and industry advocates are reviewing the
results of the investment program funded by the DOE to identify
best practices and cost/benefits to consumers and utilities. Under
the American Recovery and Reinvestment Act of 2009, the federal
government provided approximately $4.3 billion for smart grid
investments, such as an electric vehicle component manufacturing
program and advanced metering infrastructure implementations.
It is anticipated that over the next decade, smart grid activities
will continue to attract federal attention in the areas of critical
infrastructure and cyber-security. At the time of this writing,
the National Institute of Standards and Technology (NIST) was
overseeing the development of interoperability and cyber-security
standards through a collaborative process involving policy makers,
utilities, and industry. While declining to enforce specific standards,
the Federal Energy Regulatory Commission (FERC) issued a ruling
late in 2011 praising the collaborative process initiated by NIST
and requesting an updated family of standards for final ruling and
enforcement at the federal level.
The GridWise Alliance is a smart grid stakeholder organization
that facilitates dialogue across the electricity sector and academia
on matters pertaining to smart grid developments. The projects
described below are a sample of the ambitious and innovative smart
grid initiatives presently being undertaken by its membership.
a. U.S. Energy Policy
Over the past decade, the U.S. government energy policy has
been driven by multiple concerns including security of energy
supply, environmental impact of energy production, and the
ability to become “energy independent” to reverse the trend
toward importing energy over domestic production. This was
compounded by the fear of a pending “energy crisis” wherein
the nation’s energy consumption outpaces its production,
threatening its economic growth, standard of living, and
energy security. In 2010, energy produced in the U.S. provided
approximately three-fourths of its energy needs. Since the mid-
1950s, the U.S. has been a net importer of energy, and the U.S.
is presently the world’s largest importer of crude oil. While the
U.S. is not a member of the Kyoto Protocol, it does have carbon
reduction targets. Under the Copenhagen Accord, the U.S. agreed
to a non-binding target of around 17% below 2005 levels by 2020
in conformity with anticipated U.S. energy and climate legislation.
As part of its effort to address these concerns and reduce energy-related CO2 emissions, the government invested
in expanding its domestic energy resources (including renewable resources) and adopted initiatives to modernize
conservation and energy infrastructure. In his January 2012 State of the Union address, President Barack Obama
reemphasized the U.S. government’s concerns regarding energy security and restated his administration’s
commitment to clean energy and the smart grid. The last five years have seen U.S. residential electricity bills climb
significantly, reflecting increased costs in maintaining and upgrading the aging energy infrastructure and replacing or
retiring old coal-fired power plants with new natural gas and renewable energy capacity. In particular, there has been
a consistent push for renewable energy production through legislative mandates at the state level; 29 of the 50 U.S.
states have a “renewable portfolio standard” or RPS, which mandates a certain capacity of renewable energy on the
system by a designated year.
b. Electricity Sector
At the federal level, the U.S. Congress determines energy policies, the Environmental Protection Agency determines
environmental policy, and the Department of Energy funds and executes energy policies promulgated by federal
law. Finally, the Federal Trade Commission determines consumer protection policy. Transmission and interstate
commerce fall within federal jurisdiction and are regulated by the federal government through the Federal Energy
Regulatory Commission (FERC). Both the federal and state governments have jurisdiction over the sale of electricity
to consumers. Economic regulation of the distribution segment is a state responsibility and is typically performed by
Public Utility Commissions.
Independent system operators (ISOs) and regional transmission operators (RTOs) regulated by FERC operate each
of the Western, Eastern and Texas Interconnects. FERC does not have jurisdiction over the States of Alaska and
08 U.S.A.
38 < <
U.S.A > > 39
Hawaii because of the isolated nature of their grids. The North
American Electric Reliability Corporation (NERC) is authorized by the
Federal Power Act to ensure the reliability of the bulk power system
by establishing and enforcing reliability standards, monitoring the
system, providing forecasts, and offering education, training, and
certification programs (including those for transmission operators,
reliability coordinators, balancing authorities, and system operators).
Some NERC members have formed regional organizations with
similar missions (ISOs and RTOs).
Historically, the American electricity sector was dominated by
vertically integrated monopolies established by state statutes and
regulated through what is known as the “regulatory compact”.
In many states, sector restructuring has occurred. Presently, the
wholesale electricity market is competitive and there is open access
to transmission. Ten states have also opened up electricity retailing
to competition, while three additional states are currently considering
it. In most states, retail rates are regulated and set by the Public
Utility Commissions. Electric utilities are owned by the private
sector, rural electric cooperatives, or municipal governments. Power
marketers buy and sell electricity, but generally do not own or operate
generation, transmission, or distribution facilities.
c. Smart Metering / Smart Grid Infrastructure
In 2010, 663 U.S. electric utilities had 20,334,525 smart metering
infrastructure installations, approximately 90% of which were
residential customer installations. In 2011, the national average
penetration rate for smart meters was about 14%, with rates in
seven states exceeding 25%. Other than a major influx of investment
through the Federal Stimulus, much of the cost of these deployments
is recovered in the retail tariffs paid by consumers. Public reaction
to these deployments has been mixed; for utilities that articulated
the benefits of smart metering, the consumer reaction has been
positive, such as the deployments for Oklahoma Gas & Electric, San
Diego Gas & Electric, as well as CenterPoint Energy in Texas. In other
areas there has been major consumer pushback, fueled mostly by
health and privacy concerns and a negative response to the increased
electricity costs that have accompanied the smart meters. Class
action suits were launched against Pacific Gas & Electric in California
and against Oncor in Texas alleging health and privacy infringements,
as well as overbilling. The suit against Oncor was dismissed in
August 2010.
As a result of these developments, the political profile of consumer-
sensitive issues related to smart meters is higher in the U.S. In
response, there have been a series of initiatives from government
and industry to address these concerns. The Smart Grid Consumer
Collaborative was formed by private sector companies, utilities
and advocacy organizations to focus on smart grid messaging and
educational tools for consumers. In California, the government
enacted legislation protecting the privacy of consumer energy
consumption data, and the California Public Utilities Commission
ruled that customers must be allowed to opt-out of smart meter
installations (for a fee).
The smart grid is a topic with a lower popular profile than that of
smart meters. In 2003, the U.S. Department of Energy formed the
Office of Electric Transmission and Distribution (now called the
Office of Electricity Delivery and Energy Reliability) to lead a national
effort to modernize and expand the electricity grid. In January 2004,
the Office produced the National Electric Delivery Technologies
Roadmap, which articulated an ambitious vision of a smart grid
branded “Grid 2030”. Grid 2030 envisaged intercontinental power
transfers, real-time information flow from consumers, near-zero
economic losses from power outages and disturbances, and open
competitive markets in all segments of the electricity industry. This
roadmap was recently updated, but was not publicly available at the
time of this writing.
Since then, the federal government has made significant
commitments and funding available to stimulate smart grid
activity. Support for the smart grid was codified in the federal
Energy Independence and Security Act of 2007. The Department of
Energy manages an R&D and demonstration program for smart
grid technologies that matches funds for qualifying investments.
State utility commissions and industry advocates are reviewing the
results of the investment program funded by the DOE to identify
best practices and cost/benefits to consumers and utilities. Under
the American Recovery and Reinvestment Act of 2009, the federal
government provided approximately $4.3 billion for smart grid
investments, such as an electric vehicle component manufacturing
program and advanced metering infrastructure implementations.
It is anticipated that over the next decade, smart grid activities
will continue to attract federal attention in the areas of critical
infrastructure and cyber-security. At the time of this writing,
the National Institute of Standards and Technology (NIST) was
overseeing the development of interoperability and cyber-security
standards through a collaborative process involving policy makers,
utilities, and industry. While declining to enforce specific standards,
the Federal Energy Regulatory Commission (FERC) issued a ruling
late in 2011 praising the collaborative process initiated by NIST
and requesting an updated family of standards for final ruling and
enforcement at the federal level.
The GridWise Alliance is a smart grid stakeholder organization
that facilitates dialogue across the electricity sector and academia
on matters pertaining to smart grid developments. The projects
described below are a sample of the ambitious and innovative smart
grid initiatives presently being undertaken by its membership.
a. U.S. Energy Policy
Over the past decade, the U.S. government energy policy has
been driven by multiple concerns including security of energy
supply, environmental impact of energy production, and the
ability to become “energy independent” to reverse the trend
toward importing energy over domestic production. This was
compounded by the fear of a pending “energy crisis” wherein
the nation’s energy consumption outpaces its production,
threatening its economic growth, standard of living, and
energy security. In 2010, energy produced in the U.S. provided
approximately three-fourths of its energy needs. Since the mid-
1950s, the U.S. has been a net importer of energy, and the U.S.
is presently the world’s largest importer of crude oil. While the
U.S. is not a member of the Kyoto Protocol, it does have carbon
reduction targets. Under the Copenhagen Accord, the U.S. agreed
to a non-binding target of around 17% below 2005 levels by 2020
in conformity with anticipated U.S. energy and climate legislation.
As part of its effort to address these concerns and reduce energy-related CO2 emissions, the government invested
in expanding its domestic energy resources (including renewable resources) and adopted initiatives to modernize
conservation and energy infrastructure. In his January 2012 State of the Union address, President Barack Obama
reemphasized the U.S. government’s concerns regarding energy security and restated his administration’s
commitment to clean energy and the smart grid. The last five years have seen U.S. residential electricity bills climb
significantly, reflecting increased costs in maintaining and upgrading the aging energy infrastructure and replacing or
retiring old coal-fired power plants with new natural gas and renewable energy capacity. In particular, there has been
a consistent push for renewable energy production through legislative mandates at the state level; 29 of the 50 U.S.
states have a “renewable portfolio standard” or RPS, which mandates a certain capacity of renewable energy on the
system by a designated year.
b. Electricity Sector
At the federal level, the U.S. Congress determines energy policies, the Environmental Protection Agency determines
environmental policy, and the Department of Energy funds and executes energy policies promulgated by federal
law. Finally, the Federal Trade Commission determines consumer protection policy. Transmission and interstate
commerce fall within federal jurisdiction and are regulated by the federal government through the Federal Energy
Regulatory Commission (FERC). Both the federal and state governments have jurisdiction over the sale of electricity
to consumers. Economic regulation of the distribution segment is a state responsibility and is typically performed by
Public Utility Commissions.
Independent system operators (ISOs) and regional transmission operators (RTOs) regulated by FERC operate each
of the Western, Eastern and Texas Interconnects. FERC does not have jurisdiction over the States of Alaska and
08 U.S.A.
38 < <
40 < < The Global Smart Grid Federation 2012 REPORT U.S.A > > 41
Smart texaS
hOuStOn’S Smart Grid
Organizations
Houston Electric •US Department of Energy
Suppliers
IBM •General Electric •ITRON •eMETER •Quanta Services
Scale 2.2M smart meters and grid automation
Type Multiple TechnologiesCost ~$640M (including $200,000 from the U.S.government)
In Houston, Texas, Houston Electric (a subsidiary of CenterPoint
Energy) is undertaking a large scale smart grid deployment which
is funded in part by the U.S. Department of Energy. The drivers
behind the project are improving reliability in the hurricane-prone
Gulf of Mexico region as well as enabling customer control and
conservation. In this project, the utility is implementing a fully
integrated advanced metering system, customer web portal, and
automatic outage notification application. This, combined with its
Intelligent Grid initiative to modernize and strengthen the grid,
makes it one of the few large scale end-to-end smart grid projects.
A survey of customers reported significant changes in electricity
behavior in the majority of respondents. The utility intends to
introduce time-of-use pricing in the second phase of the project.
Organization OnCor
Suppliers IBM •EcoLogic Analytics •Landis+Gyr
Scale 3.4M smart meters and grid automation
Type Multiple Technologies
Cost Not Available
Pacific Northwest Smart Grid Demonstration Project
20 types of assets across 12 utilities serving < 60,000 customers
~$180M
Smart Texas3.4M smart meters + grid automation
Houston’s Smart Grid 2.2M smart meters + grid automation
~$640M (including $200,000 from the U.S.government)
As part of the Smart Texas initiative, Oncor is implementing a
massive smart meter deployment and distribution automation
project. Once the project is fully implemented, consumers will
be able to track their usage data through a customer web portal
or an in-home monitor. Oncor has implemented a solution
that leverages the ZigBee Smart Energy Profile to provide data
exchange between the smart meter and the in-home display.
This, combined with programs such as the consumer-focused
“Biggest Energy Saver” contest, has shown reductions in usage
by as much as 15%. The project also provides the Electricity
Reliability Council of Texas (ERCOT) with usage data at 15
minute increments, allowing for very granular billing. The roll
out is targeted to be complete in 2012.
PaCifiC nOrthweSt Smart Grid demOnStratiOn PrOjeCt
Organizations
•Pacific Northwest National Labs
•U.S. Department of Energy
•Bonneville Power Administration
•Avista Utilities
•Idaho Falls Power
•Inland Power and Light
•Lower Valley Energy
•Portland General Electric
The Pacific Northwest Smart Grid Demonstration Project is a large pilot project which spans five states
(Montana, Washington, Idaho, Oregon and Wyoming) and involves 22 utilities (vertically integrated,
city-owned, and rural cooperatives), as well as lab and university partners. The project intends to dem-
onstrate a single integrated smart grid incentive signaling approach that will allow for the continuous
coordination of smart grid assets. It is presently in the testing and validation phase for technologies
and will commence demonstration and data collection in summer 2012. All use classes are represented
in the demonstration including residential, commercial, industrial, and irrigation customers. The
project is targeted to create jobs, improve grid efficiency and reliability, and empower customers to
conserve energy. This project is unique both for its geographical reach (five U.S. state territories) and
for its comprehensive testing of multiple technologies within all types of utilities.
Scale 20 types of assets across 12 utilities serving more than 60,000 customers
Type Distribution Automation, Distributed Generation, Energy Storage, Advanced Meter Infrastructure, Demand Response
Cost ~$180M
Suppliers
•3TIER Inc
•AREVA T&D
•IBM
•QualityLogic Inc
•Netezza Corporation
•Drummond Group Inc
d. Notable Projects
•Milto-Freewater City Light and Power
•Flathead Electric Cooperative
•NorthWestern Energy
•Peninsula Light Company
40 < < The Global Smart Grid Federation 2012 REPORT U.S.A > > 41
Smart texaS
hOuStOn’S Smart Grid
Organizations
Houston Electric •US Department of Energy
Suppliers
IBM •General Electric •ITRON •eMETER •Quanta Services
Scale 2.2M smart meters and grid automation
Type Multiple TechnologiesCost ~$640M (including $200,000 from the U.S.government)
In Houston, Texas, Houston Electric (a subsidiary of CenterPoint
Energy) is undertaking a large scale smart grid deployment which
is funded in part by the U.S. Department of Energy. The drivers
behind the project are improving reliability in the hurricane-prone
Gulf of Mexico region as well as enabling customer control and
conservation. In this project, the utility is implementing a fully
integrated advanced metering system, customer web portal, and
automatic outage notification application. This, combined with its
Intelligent Grid initiative to modernize and strengthen the grid,
makes it one of the few large scale end-to-end smart grid projects.
A survey of customers reported significant changes in electricity
behavior in the majority of respondents. The utility intends to
introduce time-of-use pricing in the second phase of the project.
Organization OnCor
Suppliers IBM •EcoLogic Analytics •Landis+Gyr
Scale 3.4M smart meters and grid automation
Type Multiple Technologies
Cost Not Available
Pacific Northwest Smart Grid Demonstration Project
20 types of assets across 12 utilities serving < 60,000 customers
~$180M
Smart Texas3.4M smart meters + grid automation
Houston’s Smart Grid 2.2M smart meters + grid automation
~$640M (including $200,000 from the U.S.government)
As part of the Smart Texas initiative, Oncor is implementing a
massive smart meter deployment and distribution automation
project. Once the project is fully implemented, consumers will
be able to track their usage data through a customer web portal
or an in-home monitor. Oncor has implemented a solution
that leverages the ZigBee Smart Energy Profile to provide data
exchange between the smart meter and the in-home display.
This, combined with programs such as the consumer-focused
“Biggest Energy Saver” contest, has shown reductions in usage
by as much as 15%. The project also provides the Electricity
Reliability Council of Texas (ERCOT) with usage data at 15
minute increments, allowing for very granular billing. The roll
out is targeted to be complete in 2012.
PaCifiC nOrthweSt Smart Grid demOnStratiOn PrOjeCt
Organizations
•Pacific Northwest National Labs
•U.S. Department of Energy
•Bonneville Power Administration
•Avista Utilities
•Idaho Falls Power
•Inland Power and Light
•Lower Valley Energy
•Portland General Electric
The Pacific Northwest Smart Grid Demonstration Project is a large pilot project which spans five states
(Montana, Washington, Idaho, Oregon and Wyoming) and involves 22 utilities (vertically integrated,
city-owned, and rural cooperatives), as well as lab and university partners. The project intends to dem-
onstrate a single integrated smart grid incentive signaling approach that will allow for the continuous
coordination of smart grid assets. It is presently in the testing and validation phase for technologies
and will commence demonstration and data collection in summer 2012. All use classes are represented
in the demonstration including residential, commercial, industrial, and irrigation customers. The
project is targeted to create jobs, improve grid efficiency and reliability, and empower customers to
conserve energy. This project is unique both for its geographical reach (five U.S. state territories) and
for its comprehensive testing of multiple technologies within all types of utilities.
Scale 20 types of assets across 12 utilities serving more than 60,000 customers
Type Distribution Automation, Distributed Generation, Energy Storage, Advanced Meter Infrastructure, Demand Response
Cost ~$180M
Suppliers
•3TIER Inc
•AREVA T&D
•IBM
•QualityLogic Inc
•Netezza Corporation
•Drummond Group Inc
d. Notable Projects
•Milto-Freewater City Light and Power
•Flathead Electric Cooperative
•NorthWestern Energy
•Peninsula Light Company
42 < < The Global Smart Grid Federation 2012 REPORT > > 43
Nakano, Jane. (March 23, 2011.) Japan’s Energy Supply and
Security since the March 11 Earthquake. Center for Strategic and
International Studies: March 23, 2011. Retrieved on the website for
the Center for Strategic and International Studies: http://csis.org/
publication/japans-energy-supply-and-security-march-11-earthquake.
National Energy Board. (Nov. 21, 2011.) Canada’s Energy Future:
Energy Supply and Demand Projections to 2035 - Emerging Fuels and
Energy Efficiency Highlights. Retrieved from the National Energy
Board website: http://www.neb-one.gc.ca/clf-nsi/rnrgynfmtn/
nrgyrprt/nrgyftr/2011/fctsht1134mrgngfl-eng.html.
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42 < < The Global Smart Grid Federation 2012 REPORT > > 43
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december2011/.
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Japanese Energy and Smart Grid Policy. UCB GSPP CEPP Seminar
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for Evolutionary Economics’ website: http://www.econ.kyoto-u.
ac.jp/~ida/4Hoka/smagri/20110921GSPP_Ida.pdf.
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com/news/2011-11-07/japan-to-set-national-standards-for-smart-
meters-nikkei-reports.html.
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bottleneck.
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Working Group of the Joint Steering Group for the All Island
Energy Market. (July 2005.) All-Island Energy Market: Renewable
Electricity – A 2020 Vision (Preliminary Consultation Document).
Retrieved from the Eirgrid website: http://www.eirgrid.com/media/
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